Keeping up to date with various proposed changes to the different types and the timelines for government help re Covid 19 is confusing, to make life a little easier, here is a brief summary, if you need detailed information get in touch with us it is easy or alternatively it is all fully explained on our website www.shaikhandcoaccountants.com
THE CORONAVIRUS JOB RETENTION SCHEME (CJRS) IS CHANGING!
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.
- September the government will cover only 70% of salaries, to a cap of £2,190; and
- 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.
- August – HMRC will pay 80% of wages up to £2,500. Employers will be required to pay employers national insurance and pension contributions.
- September – HMRC will pay 70% of wages up to £2,187.50. Employers will be required to pay employers national insurance and pension contributions.
- October – HMRC will pay 60% of wages up to £2,187.50. Employers will be required to pay employers national insurance and pension contributions.
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.
SELF-EMPLOYED GET SECOND GRANT FROM GOVERNMENT
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 eligibility criteria is the same for both grants
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.
They will be capped at £6,570.
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.
This is the second and final time grants will be offered, the chancellor said.
The Government offered the first grant to the self-employed in March, paying 80% of average monthly trading profits, capped at £7,500.
No announcement or Grant was made at the Daily press conference regarding Company Directors and those who became self-employed after April 2019.
Stay healthy and safe
The information contained in this article is for general information purposes only and does not constitute advice, Whilst we endeavour to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability for a particular purpose. We recommend that professional advise should be taken from a suitably qualified expert before undertaking any action.