What changes are being made to the Job retention scheme from July 2021? 

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The government developed the Job retention scheme in March 2020 to help employers retain workers that they had to furlough during lockdown.  Following review, the government has altered the contribution they will make under the scheme and will ask employers to contribute for the first time.  The change’s aim to reflect the expected economic recovery for businesses following the progression of the roadmap out of lockdown and the pace of reopening in April 2021. 

Government contribution 

From 1 July 2021, the government will be reducing their contribution to employee’s wages by 10%. Therefore, the government will contribute 70% to employee wages of up to 2,187.50. 

From 1 August until 30 September 2021, the government’s contribution will reduce further by 10%. The government will only contribute 60% to employee wages of up to £1,875. 

Employers contribution

From 1 July 2021, employers will now have to contribute the remaining 10% of employee wages of up to £312.50. Employers must still pay their contribution towards their employees’ national insurance and pensions.

From 1 August until 30 September 2021, employers will now have to contribute the remaining 20% of employee wages of up to £625. Employers must still pay their contribution towards their employees’ national insurance and pensions.

Deadlines to claim under the scheme from June – September 2021

Employers must submit a claim to HMRC by 11.59 pm on 14 July 2021 to claim back wages for furloughed days for June 2021. 

Employers must submit a claim to HMRC by 11.59 pm on 14 August 2021 to claim back wages for furloughed days for July 2021. 

Employers must submit a claim to HMRC by 11.59 pm on 14 September 2021 to claim back wages for furloughed days for August 2021. 

Employers must submit a claim to HMRC by 11.59 pm on 14 October 2021 to claim back wages for furloughed days for September 2021.

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