CJRS and other COVID-19 support changes and deadlines from July 2021

CJRS changes take effect in July, meaning that the UK Government will be paying 70% of Furloughed employees’ usual wages for the hours not worked, up to a cap, down from the previous 80% under the Coronavirus Job Retention Scheme.

Additionally, there are several other deadlines and changes to Government Covid-19 support schemes that businesses should be aware of. These include the 21‌‌ ‌June deadline for joining the online VAT deferral new payment scheme, the deadline for submitting June Coronavirus Job Retention Scheme (CJRS) claims and an extension to the temporary insolvency measures.

21 July Deadline for joining the online VAT deferral new payment scheme

As previously reported, the last day for joining the VAT deferral new payment scheme online is 21 June 2021. This is currently open for any business that deferred paying VAT due between 20.03.2020 ‌and 30.06.2020 and were unable to pay in full by 31 March‌‌ ‌2021.

If you have deferred paying VAT and have not yet joined the VAT deferral new payment scheme, you could be charged a penalty of 5% and/or interest if this has not been paid in full by 30.06.2020 or if you do not join the new scheme online by the 21.06.2021 deadline.

More details on this and the options available can be found in our article “VAT deferral new payment scheme – take action by 21 June if you wish to sign uphere.

14 July deadline for the submission of June Coronavirus Job Retention Scheme CJRS claims

CJRS claims for periods in June 2021 can now be submitted. These are required to be made by Wednesday‌‌ ‌1‌‌4 Ju‌‌l‌‌y 2021.

80% of businesses furloughed employees’ usual wages for the hours not worked can be claimed for his period, up to the cap of £2,500 per month.

Claims for CJRS can be made before, during or after payroll has been processed.

As a condition of any claim, the associated employee tax and National Insurance contributions must be paid by the employer to HMRC.

Further information is available at gov.uk here.

Changes to the CJRS scheme from July

The UK Government will pay 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50 In July, this is a reduction from the previous 80%. In the following two months, this reduces to 60% of employees’ usual wages (with a cap of £1,875).

Employees are required to pay the 10% difference in July and the 20% difference in the following two months. This will mean that furloughed employees will receive at least 80% of their usual wages for the hours they do not work during this time, up to a monthly cap of £2,500.

Extension to temporary insolvency measures confirmed

The Government announced yesterday that it is extending temporary insolvency measures to help protect businesses.

This means that regulations are set to be laid so restrictions on statutory demands and winding up petitions are to remain for a further 3 months until 30.09. 2021. This will protect companies from creditor enforcement action in instances where debts relate to the pandemic.

These measures were first introduced in the Corporate Insolvency and Governance Act in March 2020, which included protecting businesses from aggressive creditor enforcement and these have previously been extended several times.

Further information regarding Government support measures

Further information is available on gov.uk here. You can also check out our COVID-19 business support hub here for information on the support packages available.

Alexander & Co – here for your business

For advice or assistance, whatever industry you are in, contact our dedicated team of accountants and tax advisors. We are here to provide you with all aspects of tax and business growth advice to help your business thrive in the current climate and beyond.

Call us on 0161 832 4841, email info@alexander.co.uk or simply fill out the form below and with the details of your enquiry and we will be in touch shortly.

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