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On 31 October 2020, HM Treasury announced that the Coronavirus Job Retention Scheme (CJRS) will be extended until December across the whole of the UK. This follows the announcement of further lockdown restrictions in England.

Employers are not required to have previously used the CJRS in order to benefit from the extended scheme. In order to claim, the employee in question must have been on the PAYE payroll by 23:59 on 30 October 2020.

The Government will pay 80% of wages up to a cap of £2500. Meanwhile, employers will be required to pay employer NICs and pension contributions. As with the existing scheme, employers may top up employee wages if they wish. Similarly, flexible furloughing is permitted.

The Job Support Scheme, which was due to come into effect on the 1 November, has now been postponed until the CJRS comes to an end.

Further guidance on the extended scheme is due to be published shortly.

The full press release can be found here.

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