Furlough Scheme Cut-Off Date Extended To 19 March

Thousands more employees will able to receive support through the Coronavirus Job Retention Scheme (CJRS) after the eligibility date was extended to 19 March 2020, the government has announced.

Under the scheme announced by Chancellor Rishi Sunak last month, employers can claim a grant covering 80% of the wages for a furloughed employee, subject to a cap of £2,500 a month.

To qualify and to protect against fraudulent claims, individuals originally had to be employed on February 28 2020.

But following a review of the delivery system and to ensure the scheme helps as many people as possible, new guidance published today has confirmed the eligibility date has been extended to March 19 2020– the day before the scheme was announced.

Employers can claim for furloughed employees that were employed and on their PAYE payroll on or before 19 March 2020. This means that the employee must have been notified to HMRC through an RTI submission notifying payment in respect of that employee on or before 19 March 2020.

This change makes the scheme more generous while keeping the substantial fraud risks under control and is expected to benefit over 200,000 employees.

UKHospitality welcomed the extension UKHospitality Chief Executive Kate Nicholls said: “This is great news for the sector and a welcome sign that the Government has listened to our concerns and those of the workforce.

“This will provide some very valuable peace of mind for employees who had missed the previous deadline, and it will give businesses some breathing-room knowing that they will be in a stronger situation once they are in a position to reopen.”