Updates to the Coronavirus Job Retention Scheme and Self-Employed Income Support Scheme

Updated by the Chancellor on 29/05/2020

We have picked out the key points here that are relevant for employers.

Increasing costs for employers

The Coronavirus Job Retention Scheme (CJRS) grant will be tapered down with an increasing cost for employers in terms of salary, national insurance and pensions. Below is a summary of the government changes to the scheme that will occur over the coming months. 

June

Government contribution to furloughed staff 

80% Salary (max £2,500 pm) + NICs + Pension

Employer contribution to furloughed staff

No contribution required

July

Government contribution to furloughed staff 

80% Salary (max £2,500 pm) + NICs + Pension

Employer contribution to furloughed staff

No contribution required

August

Government contribution to furloughed staff 

80% Salary (max £2,500 pm)

Employer contribution to furloughed staff

Employers NICs + Pension

September

Government contribution to furloughed staff 

70% Salary (max £2,187.50 pm)

Employer contribution to furloughed staff

10% Salary (max £312.50 pm) Employer NICs + Pension

October

Government contribution to furloughed staff 

60% Salary (max £1875 pm)

Employer contribution to furloughed staff

20% Salary (max £625 pm) Employer NICs + Pension

Availability of flexible working- from July 1st 2020

• Employers will be able to bring back furloughed employees on a part time basis (e.g. working 3 days per week and furloughing for the other 2 days. They will still be able to receive the grant in full and claim the NI Contributions and Pension for the hours the employee does not work. Any flexible furloughing arrangement must be agreed with employee and confirmed in writing.
• However, if the employee is unable to work or the business is unable to provide work for the employee, then they can remain on furlough and the employer continues to claim the grant for the full hours.
• Employers need to consider how employees will return to the workplace safely. Start to consult with staff taking into consideration health and safety issues.

Closure of CJRS scheme to new entrants – from 30th June 2020

• The CJRS scheme will close to new entrants from the 30^th ‌‌ June. From this point onwards, employers will only be able to furlough employees that have furloughed for a full three-week period prior to 30^th

Self-Employment Income Support Scheme (SEISS)

The Government also announced plans to extend the Self-Employment Income Support Scheme (SEISS) for those people whose trade continues to be, or is newly, adversely affected by COVID-19.

From August 2020

• Eligible self-employed people will be able to claim a second and final SEISS. Individuals will be able to claim a taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, capped at £6,570.
• The eligibility criteria for the second grant will be the same as for the first grant. An individual does not need to have claimed the first grant to claim the second grant. For example, their business may have only been recently adversely affected by COVID-19.
• Eligible individuals can continue to apply for the SEISS grant (a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profit, capped at £7,500) until 13^th ‌‌ July.

Please note

• It is important to note that as with the first SEISS grant, the eligible individual must make the claim themselves. If an Accountant or other person attempts to make a claim on behalf of the Self-employed individual, this will trigger a fraud alert and will result in significant delays to payment.

I hope this information helps your business though these difficult times. If you have any further questions then please don’t hesitate to contact me on 01442 531016 or email.

Stay safe

Dora Ngoma

Director & Managing Partner

Grace Certified Accountants

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