Changes to the Coronavirus Job Retention Scheme from 1st July

Up until 30^th June 2021 employers were able to claim back 80% of the wages (up to £2,500) from the Government for the hours that an employee was on furlough.

From 1st July 2021 the Coronavirus Job Retention Scheme has now changed and the employer can only claim back 70% of the wages (up to £2,187.50) for the hours that the employee was on furlough. The employer will then need to top up the wages to ensure that the employee receives at least 80% of their wages (up to £2,500) in total for the hours the employee was on furlough.

The Government's contribution will drop further from 1st August 2021 to 60% (up to a cap of £1,875) for the hours that the employee is on furlough and the employer will then need to top up the wages to at least 80% of the employees wages (up to £2,500) in total for the hours the employee is on furlough .

It is up to the employer if they want to top up the employees’ wages above the 80%.

Date published 6 Jul 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.