From the 1st‌‌ September HMRC has reduced its furlough percentage from 80% to 70% of usual employee wages up to a cap of £2,187.50 per month (previously £2,500) for the hours furloughed employees do not work.

What you need to do:

  • Continue to pay furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month.  Employers need to fund the difference between the £2,500 cap and the CJRS grant.
  • The caps are proportional to the hours not worked.  So if the employee is furloughed for 50% of their usual hours in September, you can claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).
  • Continue to pay furloughed employees’ National Insurance and pension contributions from your own funds.

Make sure your data is right

It is important you provide all the data HMRC need to process your claim.  Payment of your grant may be declined or delayed if you submit a claim that is incomplete or incorrect.

Need more advice

If Kay Johnson Gee’s payroll team look after your payroll we will make the necessary adjustments and let you know.  We will also continue to submit claims on your behalf.  If we do not look after your payroll and have a question please email info@kjgllp.com.