Financial Support for a phased return to work

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.

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Online claim service for the Self-Employment Income Support Scheme (SEISS) is open

The online service for making a claim through the Self-Employment Income Support Scheme (SEISS) has opened today (13th May 2020).

The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. This is a temporary scheme, but it may be extended.

Are you eligible?

You will be eligible if your business has been adversely affected by coronavirus, you traded in the tax year 2019 to 2020, you intend to continue trading, and you:

· earn at least half of your income through self-employment

· have trading profits of no more than £50,000 per year

· traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year

You can check to see if you’re eligible here. You will need your UTR (unique taxpayer reference) and NI (national insurance) numbers to hand.

You can find more information about the grant and eligibility here.

If you have any questions regarding this scheme, or how to use the eligibility checker, we are available to help. You can contact Steve Vickers or your usual Hart Shaw contact.

 

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Self-Employment Income Support Sheme (SEISS)

HMRC are contacting taxpayers who may be eligible for the government’s Self-Employment Income Support Scheme (SEISS).

Broadly, it is a taxable grant worth 80% of average trading profits up to a maximum of £7,500. You, or we on your behalf, can go online and check your eligibility.

To use the checker you need:

· Your Unique Taxpayer Reference (UTR) and National Insurance Number

You will also get an answer quicker if your Government Gateway account details are accurate and up to date.

If eligible, the checker will tell you when you can submit your claim. Claims begin on 13 May.

The claims process will be very simple, and those eligible will have the money paid into their bank account by 25 May, or within six working days of completing a claim.

Are you eligible?

You will be eligible if your business has been adversely affected by coronavirus, you traded in the tax year 2019 to 2020, you intend to continue trading, and you:

· earn at least half of your income through self-employment

· have trading profits of no more than £50,000 per year

· traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year

Further information

Further guidance can be found on GOV.UK:

· the HMRC Self-Employment Income Support Scheme eligibility checker

· guidance: Check if you can claim a grant through the Self-Employment Income Support Scheme

· guidance: How HMRC works out trading profits and non-trading income for the Self-Employment Income Support Scheme

· guidance: How different circumstances affect the Self-Employment Income Support Scheme

IF YOU WOULD LIKE HART SHAW TO HELP YOU PLEASE CONTACT US ON 0114 2518850 OR SEE OUR WEBSITE FOR FURTHER CONTACT DETAILS