Chartered ONE Issue 29

Page 28

LSCA Business

Covid-19 Financial Support from April 2021

As we move into the new financial year and following the Budget on 3 March, a number of COVID-19 related financial support measures continue in place. This update summarises the main forms of support that remain available as at 1 April 2021. A comprehensive list of business support measures and links to full detail of each scheme are available via GOV.UK

Coronavirus Job Retention Scheme (CJRS) The CJRS, which provides grant funding to businesses to support paying the wages of employees temporarily laid off due to COVID-19, has now been extended until 30 September 2021. The scheme will now gradually wind down, reducing the extent of support available, such that while employees’ minimum pay remains at 80% of their usual pay for any hours worked, an increasing share must be borne by employers: • Until 30 June 2021, grants will cover the full 80% of employees’ wages, but employers must pay employers NICs and minimum pension contributions. • In July, employers must contribute 10% towards employees’ wages (the CJRS covers 70%). • In August and September, employers must contribute 20% towards employees’ wages (the CJRS covers 60%). Employers may ‘top up’ wages above the 80% minimum if they choose, but this is not required. Employees may work on a flexible basis, paid at 100% for any hours worked (and CJRS support not claimed for those hours). Claims under the CJRS must be made on a monthly basis, by the 14th day of the following month.

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