The Chancellor of the Exchequer, Rishi Sunak, delivered his Spring Budget for 2021 on 3rd March. During this announcement it was confirmed the Job Retention Scheme (JRS) will be further extended to 30th September 2021. 

The scheme, which has been credited for preventing many job losses, was due to cease at the end of April 2021 will now continue for an additional 5 months.

Employers impacted by COVID 19 can continue to utilise the scheme as their business demands require whilst the economy opens up. The government has stated that employees will continue to be guaranteed 80% of their salary whilst on furlough or whilst working reduced hours due to COVID 19 - subject to a monthly cap of £2,500. 

Employers will still remain liable for the cost of wages for periods worked, as well as their obligations to work based pensions and National Insurance contributions.

Under the new plan there will be a tapering of government support as the economy reopens with employers expected to pay 10% towards the hours their staff do not work in July, increasing to 20% for the months of August and September, in much the same way as the scheme was due to be tapered out at the same time last year. 

It is expected that the deadlines for making claims will remain unchanged as the 15th day following the end of the month i.e March claims should be made via the government portal by 15th April. 

As always, we will continue to monitor the changes to this and all other support schemes and will look to keep our clients updated as full guidance is published. 

For a more detailed analysis of specific areas of the Budget please see our specific blogs as they are released over the coming days or join us for our FREE post Budget webinar tomorrow afternoon

By This email address is being protected from spambots. You need JavaScript enabled to view it., Tax Specialist