Chancellor Rishi Sunak had previously announced an extension to the Coronavirus Job Retention Scheme (CJRS), or “Furlough Scheme” as it has become known as, and has now announced an extension to the Self Employment Income Support Scheme (SEISS), allowing for a second claim to be made.
Coronavirus Job Retention Scheme (CJRS)
The current CJRS runs until the 30th June 2020, at which point the new CJRS will begin. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full three-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 the 10 June 2020.
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
CJRS grant for their normal hours not worked. To be eligible for the grant, employers must agree with their employee any new flexible furloughing arrangement and confirm that agreement in writing.
Key dates to note
- 10 June 2020 – The last day employers can place employees on furlough
- 30 June 2020 – Current Furlough scheme closes to new applicants
- 1 July 2020 – Flexible Furlough Scheme begins
- 1 August 2020 – Employers must pay Employer’s National Insurance Contributions and employer pension contributions for furloughed employees
- 1 September 2020 – From this date the Government will reimburse 70% of salary (up to a maximum of £2190). Employers must top up to 80% (up to a maximum of £2500)
- 1 October 2020 – From this date the Government will only reimburse 60% of salary (up to maximum of £1875). Employers must top up to 80% (up to a maximum of £2500)
- 31 October 2020 – Furlough scheme closes
Self Employment Income Support Scheme (SEISS)
Applications for the first grant opened on 13 May 2020. Applications for the first grant will close on 13 July 2020.
If you are eligible for the SEISS, you will be able to claim a second and final taxable grant worth 70 per cent of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profit, and capped at £6,570 in total.
The eligibilty criteria remains the same as the first grant (find out more here), and you do not need to have claimed the first grant in order to make a claim for the second grant. You will need to confirm that your business has been adversely affected by Coronavirus.
You can find out more about the changes to these schemes here.
As always, we’re here to help. You can contact the office on 0114 251 8850, or email your usual Hart Shaw contact.