Sarah Bradford examines some of the tough choices facing employers as the support provided by the CJRS comes to an end, and the tax implications of terminating an employee’s employment.
The Coronavirus job retention scheme (CJRS) has provided a crutch for employers and employees alike during the Covid-19 pandemic. However, as the scheme enters its final phase and support is gradually withdrawn, employers with furloughed staff face tough decisions as to whether they can afford to keep staff on.
Where this is not possible and the employee is made redundant, it is important that any payments made to the employee on the termination of their employment are calculated and taxed correctly.
Phasing out of support
The second and final phase of the CJRS runs from 1 July 2020 to 31 October 2020. During this phase, employers are not able to
