COVID-19 General Update

Here are the new rules for the second furlough scheme “CJRS v2” plus the second SEISS grant.

 

Furlough Extension – New Rules

June

• Furlough rules will remain the same as now basically:

• • 3 weeks minimum
  • 80% plus employers NI and employers pension paid by government.

• If the employee has not been furloughed at any time up to 10^th June, then they cannot be put on furlough at a later date.

 

July

• CJRS v1 (i.e. up to 30^th June) ends and CJRS v2 starts.
• Furloughed employees can go back to work part-time.
• Employers can claim a grant for the hours their employees are NOT working compared to their usual hours – these hours both worked and usual will be reported to HMRC.
• The employer will pay the employee for the amount of time worked
• Furlough claims must now be calendar monthly.
• Under CJRS 2 the number of employees in a claim cannot be greater than the maximum number of employees included in a CJRS v1 claim.
• The furlough employees not working at all the payment will remain at £2,500 or 80% of the regular salary whichever is lower plus employers NI and pension.

 

August

• Same as July but the government will NOT cover any employers NI or pension.
• Maximum cost to the employer per employee:

• • £303
  • Based on employee getting £2,500 furlough payment and NOT working at all.

 

September

• Same as August except the employer will now have to pay 10% of the 80% grant i.e. 1/8th.
• Maximum cost of £616 to the employer per employee:

• • £303 (employer NI and pension)
  • £313 (1/8^th of £2,500)
  • Based on employee getting £2,500 furlough payment and NOT working at all.

 

October

• Same as September except the employer will now have to pay 20% of the 80% grant i.e. 1/4.
• Maximum cost of £928 to the employer:

• • £303 (employer NI and pension)
  • £625 (1/4 of £2,500)
  • Based on employee getting £2,500 furlough payment and NOT working at all.

• Furlough ends 31^st October 2020

 

Self-employed income support scheme

First Grant

• If you are eligible you should have received the first grant of maximum £7,500.
• If you haven’t received it yet then you must claim this by 13^th July 2020.
• See our newsletter dated 17^th April 2020 for details on eligibility (and below).
• Contact us if you think you qualify but haven’t received the grant yet.

 

Second Grant

• Same eligibility as the first as below.
• You can claim if you’re a self-employed individual or a member of a partnership and you:

• • have submitted your Self-Assessment tax return for the tax year 2018 to 2019
  • traded in the tax year 2019 to 2020
  • are trading when you apply, or would be except for coronavirus
  • intend to continue to trade in the tax year 2020 to 2021
  • have lost trading profits due to coronavirus

• Your trading profits must also be no more than £50,000 and more than half of your total income for either:

• • the tax year 2018 to 2019
  • the average of the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019

• You’ll get a taxable grant based on your average trading profit over the 3 tax years:

• • 2016 to 2017
  • 2017 to 2018
  • 2018 to 2019

• If you have been self-employed for less than 3 years, then the average will be taken over the period you have been trading.
• Government will pay the lower of 70% of the average or £2,190 per month.
• The payment will be subject to income tax and national insurance.
• Applications will open in August 2020.