23rd December 2020

Further extension to the furlough scheme

In a surprise move, the Chancellor has announced that the Coronavirus Job Retention Scheme is to be further extended until 30 April 2021.

In a written ministerial statement to parliament, Rishi Sunak has confirmed that the Coronavirus Job Retention Scheme (CJRS) will be extended by another month,  until the end of April 2021.

The statement confirmed that the eligibility criteria for the scheme, the grant levels available and employer contributions all remain the same.

This means that for hours not worked employers can continue to claim for 80% of employee salaries for hours not worked, subject to the £2,500 cap, and will only need to pay employer national insurance and pension contributions. Employers will be required to pay wages, national insurance contributions and pension contributions for hours worked in the usual way.

The news of the extension to the scheme has come earlier than expected, as previously the Chancellor had committed to reviewing the level of support available in January 2021. In today’s statement, he confirmed that the review had come earlier to “provide certainty to businesses, so that they can plan for the remainder of the winter and New Year”.

His statement, entitled Economic Update, Sunak also confirmed that deadlines for applying for government-guaranteed COVID-19 loan schemes (CBILS, CLBILS and BBLS) had now been extended until 31 March 2021.

If you are new to Revel and are keen to find out more, please call our consultant Will Bolter FCCA MAAT ATT  (our designated COVID-19 response advisor) on 07379 451484 or contact us by email here.