Coronavirus Job Retention Scheme Next Steps & Extension of Self-Employed Income Support Scheme
Alan Woods
Helping business owners monitor the performance of their businesses so that they can make better decisions
It has been another busy week for updates and announcements from the government in response to their Coronavirus support with the main updates relating to the following:
Coronavirus Job Retention Scheme - the Chancellor announced that from 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim the CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week.
Full details of how the above flexible furlough scheme will work will be released on 12 June, we'll share another update as soon as they have been released.
The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June.
This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.
From 1 August onwards Employers will be asked to contribute to the cost of furlough with the contribution increasing as follows:
- From 1 August Employers will need to pay the Employers National Insurance and Pension Contributions, the Chancellor estimated this would be equivalent to approx 5% of the total cost
- From 1 September in addition to the Employers National Insurance and Pension Contributions the Employer will also need to contribute 10% to the cost of furlough as the level of grant falls to 70%
- From 1 October in addition to the Employers National Insurance and Pension Contributions the Employer will also need to contribute 20% to the cost of furlough as the level of grant falls to 60%
If you have any questions on the above and how it will impact you and your business please feel free to get in touch.
Self-Employed Income Support Scheme - individuals can continue to apply for the first SEISS grant until 13 July using the link below
Self-Employed Income Support Scheme
Applications for the second grant will open in August. Individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at ￡6,570 in total.
The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by Coronavirus. An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by COVID-19 in this later phase.
Further guidance on the second grant will be published on Friday 12 June.
If anyone has any questions on any of these schemes or any of the other schemes already in place please do not hesitate to contact me.
We will be continuing to provide any support linked to the various Coronavirus schemes for all of our clients without any extra charge, we are aware that some accountants are charging for this. If you know any business that is being charged for any of the above support then please ask them to get in touch as any business that becomes a client of ours will benefit from this free support which may save them significant time and money over the next few months.
#weareallinthistogether
I'll be online again on Friday from midday where I'll be happy to answer any questions that you may have on any of the above or about your business, the details to join this Q&A session are below
Weekly Support Q&A
Every Friday from 12:00pm to 1:00pm
To register for the event simply click here
We are in uncertain times so if you need anything at any time please let me know, if you'd prefer to book a call with me rather than join the session above then please use the link below to do so
Best Wishes
Alan
P.S. As you know to make it easier for you to keep up-to-date with all of the announcements we've created a resource page on our website with links to all of the above information which we'll be updating on a regular basis. If you come across anything that you think would be beneficial for us to add to the resource page please just let us know. Link to the page is below, I'd suggest that you add it to your favourites to make it easier for you to be able to come back to as things change in the coming days and weeks.