Coronavirus Job Retention Scheme extended until 31st October 2020

Posted on 13th May 2020 by Streets


Image to represent Coronavirus Job Retention Scheme extended until 31st October 2020

The Chancellor of the Exchequer, Rishi Sunak, announced on Tuesday 12th May 2020 that the Coronavirus Job Retention Scheme (CJRS) will remain open to applications until 31st October 2020.


The scheme was due to end on 30th June 2020 and this will be welcomed by many businesses in the UK that may not open or be fully operational for months to come.

Under the current scheme, employees can receive up to 80% of their current salary subject to a maximum cap of £2,500 per month. There was no announcement to reduce the scheme percentages or the cap but this may change in the months ahead.

The scheme is still available to all UK businesses regardless of sector, but again to encourage certain sectors to bring staff back and to commence operations, this could be tweaked on a sector by sector basis to protect the most vulnerable sectors and businesses to allow for phasing in of businesses operations.

Also announced, from the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff. It has been mooted this could be up to 50%, but we will know more details in the forthcoming weeks. This would help many businesses that will have to reopen, but with social distancing measures in place, there will be reduced footfall and activity so there will be a need to bring some staff back part-time, but the measure should allow employees to remain employed until measures are relaxed further.

To date there are 7.5 million employees who have been furloughed by 935,000 employers. The total claimed under the scheme is currently £10.1billion and this is predicted to rise further.


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


Changes to HICBC

It was announced as part of the Autumn Budget measures that the government will not now proceed with the reform to base the High Income Child Benefit Charge (HICBC) on household incomes. To make it easier for all taxpayers to get their HICBC right,


Help to Save scheme extended

As part of the recent Budget measures, it has been confirmed that the Help to Save scheme is to be extended by a further 2 years, until April 2027. The last date an account can be opened under the current scheme will be 5 April 2027. Around 517,000


Changes to Agricultural and Business Property Relief

It was announced as part of the Budget measures that the government will reform these reliefs from 6 April 2026. The existing 100% rates of relief will be maintained for the first £1 million of combined agricultural and business property. The rate of

You might also be interested in...