05 June 2020 
Julia Ascott, Employment Taxes Specialist
Further information on how the Job Retention Scheme (JRS) would be adapted and phased out was published on Friday and you can read the news alert in full here, however, we recommend reading the accompanying factsheet for a quick breakdown of the changes. UPDATE - The BUFDG summary document has now been updated with these changes which you can access here.
A summary of the changes are set out below.
Use it or lose it
One of the biggest factors is the 'use it or lose it' aspect - JRS will close to new applicants on 30 June. BUT this doesn't mean you can furlough just before 30 June as 'new applicants' mean those employees who have been furloughed for the minimum 3 weeks as at 30 June. If you haven't furloughed but have been thinking about it, you have until 10 June to make the decision and inform relevant employees.
Flexi-furlough
For those employees who have qualifying to continue within the JRS, furloughing can now be done on an agreed 'flexible' basis. Employees can come back to work from 1 July but if they are carrying out far less hours than they would normally do, the difference can be furloughed. NB there has to be an agreement in writing with the employee to changes in their working arrangements.
Whilst we await further details on how this will work in practice (due 12 June) it is understood that:
Future changes - phased withdrawal
From August, the amount the Government will pay under the JRS reduces, as follows:
Any questions, please email Julia Ascott.
