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New CJRS Treasury Direction

Gateley Legal

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The Treasury Direction which extends the Coronavirus Job Retention Scheme (CJRS) from 31 October 2020 has now been published. 

This sets out the “legislation” behind the CJRS and the HMRC guidance which explains how and when employers can make claims. 

The Direction specifically covers the period from 1 November 2020 to 31 January 2021. A further Direction will be issued to take into account the Government review of the Scheme which will take place in January.

Important changes to the CJRS 

The Direction confirms an important change to the CJRS in that as expected from 1 December 2020 a claim will not be possible in respect of any day upon which an employee is on notice of termination of their contract of employment. That exclusion applies whether the employer or the employee has given notice. The HMRC guidance has also been updated to reflect this. It means that employers will need to pay the employees’ full wages if they are on notice. 

The Direction clarifies that where there has been a “transfer of a business or undertaking or part thereof” resulting in the change in the employee’s employer on or after 1 September 2020 that will be a relevant transfer and the new employer will be able to claim for the employees. The HMRC guidance which had on first publication erroneously referred only to transfers before that date has now been corrected. It remains a condition of eligibility that there has been a PAYE Real Time Information submission to HMRC by either the new or old employer between in respect of the employee between 20 March 2020 and 30 October 2020. 

The Direction also confirms that information regarding claims made on or after 1 December 2020 will be made available to the public. This will include the name of the employer and the amount that they have claimed under the CJRS. 

The Direction has formally withdrawn the Coronavirus Job Retention Scheme (Job Retention) Bonus so no claims will be permitted under that for employees who have been retained through to January.

Do you require more information regarding the new CJRS Treasury Direction?

For further guidance regarding the new legislation please contact our experts listed below.

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