This guidance page was updated on 12 June to include details on how the scheme will change from 1 July. The first time you will be able to make claims for days in July will be 1 July, you cannot claim for periods in July before this point. 31 July is the last day that you can submit claims for periods ending on or before 30 June. Read more below:Changes to the Coronavirus Job Retention Scheme
Today face masks become compulsory on public transport in England and the Government has outlined its recovery strategy.
The Coronavirus job retention scheme rules (CJRS) are changing, and these are outlined below and other Government news.
At the end of the newsletter are details of allowable expenses for home working.
Please contact us if you have any queries. Stay safe! Read more below:C19 Business News Update
The Self-Employment Income Support Scheme currently allows you to claim a taxable grant worth 80% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total. Read more below:How different circumstances affect the Self employed grant scheme
UK Chancellor Rishi Sunak outlined changes to the furlough scheme during the daily press briefing (29 May 2020).
The Chancellor stated that in June and July the furlough scheme will continue as before, but employers will be asked to cover National Insurance and employer pension contributions in August.
By September, businesses will pay 10% of wages for furloughed staff, and in October 20%, the UK chancellor said.
This means the subsidy will taper off from August, with businesses expected to pay a greater share of their staff salaries, starting with covering National Insurance and pension contributions. From September the government will cover only 70% of salaries, to a cap of £2,190 and from October it will pay 60%, to a cap of £1,875. Employers will make up the shortfall to get salaries back to 80% of pre-Covid lockdown levels.
After that, the scheme will close.
Flexible Furloughing of employees
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. When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week.
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.
Further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June.
At this stage we do not know more details – calculating furlough for workers returning part time will, we suspect, prove to be challenging, especially if there are variable working patterns . We will provide further information and guidance as soon as it is known.
Lisa and the Liric Team
Chancellor Rishi Sunak has said self-employed workers across the UK will be able to access a second Grant from the government to cover lost income while the country is in lockdown.
The grants paid out by the Self-Employment Income Support Scheme (SEISS) will be worth 70% of a self-employed person’s average monthly trading profits to cover three months’ worth of income. The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus when applying for the second and final grant. An individual does not need to have claimed for the first grant to be eligible for the second. They will be capped at £6,570.
This is the second and final time grants will be offered, the chancellor said.
Applications will open in August 2020. Further information will be available on gov.uk on 12 June 2020.
The scheme so far has been used by 2.6 million people and has paid out £6.8bn in claims to self-employed who have been affected by the impact of coronavirus on the economy.
The Government offered the first grant to the self-employed in March, paying 80% of average monthly trading profits, capped at £7,500. Applications for the first grant will close on 13 July 2020.
No announcement or Grant was made at the Daily press conference regarding Company Directors and those who became self-employed after April 2019.
If you have not yet applied for your first grant and require any assistance – please contact us