The Coronavirus Job Retention Scheme changes and workplace pensions

Posted on 23rd June 2020 by Streets


Image to represent The Coronavirus Job Retention Scheme changes and workplace pensions

For furlough claims starting on or after 1 August 2020, employers will no longer be able to claim a grant for the statutory minimum automatic enrolment employer contributions – from this date they will need to pay for their own pension contributions and National Insurance contributions for all staff. 

Through the Coronavirus Job Retention Scheme, employers will still be able to claim the lower of 80% of staff wages or £2,500 a month, reducing to the lower of 70% or £2,187.50 a month in September and the lower of 60% or £1,875 in October, with the scheme closing on 31st October.

The Pensions Regulator has provided updated guidance on these changes, along with information on how to treat furloughed workers who are returning to work part-time, what the changes mean to salary sacrifice arrangements and what to do if your company is struggling to pay contributions.

 


No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


Expert insight and news straight
to your inbox

Related Articles


Is it time to reflect on the culture of your organisation?

Having been involved in recruitment interviews recently, in which seemingly all applicants asked what the culture of the organisation was like, it did give rise to reflection on the same and what is meant by culture and how it affects the success or otherwise of an organisation. Organisational ...


Class 4 NICs who is liable?

Most self-employed people are required to pay Class 4 National Insurance contributions (NICs) if their profits are £12,570 or more a year. Class 4 NIC rates for the tax year 2024-25 are 6% (2023-24: 9%) for chargeable profits between £12,570 and


Post Transaction Valuation Checks

A Post Transaction Valuation Check (PTVC) can be requested from HMRC for an individual to work out a capital gains tax liability or for companies to calculate corporation tax liability on chargeable gains. The request for a PTVC should be made using


You might also be interested in...