May 2020 - Changes to the Coronavirus Job Retention (“CJRS”) and the Self-Employment Income Support Scheme (“SEISS”)

CJRS

When are the changes being implemented: From 1 July 2020.

What is changing? You will be able choose whether to bring employees back to work from furlough of any length on either a full time or part time basis. If full time employees are returning on a part time basis, i.e: they are still furloughed for part of the time, you will be 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.

Who will the revised scheme cover? Employees will be eligible if they have been furloughed for at least a full 3 week period prior to 30 June 2020. This means that the final date by which an employer can furlough an employee for the first time will be 10 June 2020. Employers will have until 31 July to make any claims in respect of the period to 30 June.

How much will the government contribute?

  • The contribution will continue at 80% of the employee’s salary, up to £2,500 per month plus Employers’ NI and pension contributions until the end of July 2020.
  • For August 2020 the contribution will remain at 80% but employers will pay NICs and pension contributions.
  • In September 2020 employers will have to pay 10% of wages plus all NICs and pension contributions, the government will contribute 70% up to a maximum of £2,190.
  • In October 2020 employers will have to pay 20% of wages plus all NICs and pension contributions, the government will contribute 60% up to a cap of £1,875.


SEISS

Current scheme: Individuals can continue to apply for the first SEISS grant until 13 July 2020. Eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total.

New scheme: A second, taxable, grant worth will come on-line in August 2020.

  • Worth 70% of average monthly trading profits,
  • Paid out in a single instalment covering three months’ worth of profits,
  • 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.

What about the detail? This will published on 12 June 2020 for both schemes.

More information https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-furlough-next-steps