Financial Support – Coronavirus Update

On Friday 29 May, the Chancellor outlined changes to the financial support it has been providing for employees and the self-employed during the current pandemic.  An overview of the various changes is below. 

For details of the original scheme and the support provided please visit our March blog. 

Job Retention Scheme:

General Rules

The government support will remain in place at the current rate of 80% capped at £2,500 until 1 August 2020.

From 1 August the employer will be required to pay Employers NI and pensions contributions and the government will continue with the 80% contribution capped at £2,500.

From 1 September the employer will be required to pay Employers NI and pension contributions plus 10% of the wages bill, the government will pay a 70% contribution capped at £2,187.50.

From 1 October the employer will be required to pay Employers NI and pension contributions plus 20% of the wages bill.  The government will pay a 60% contribution capped at £1,875

It is important to note that the scheme closes 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 to 30 June.

The scheme is proposed to finish on 31 October 2020.

Part Time Options

From 1 July it will be possible to bring back team members on a part time basis, with the employer being responsible for settling the wages for days worked and the days on furlough to remain within the scheme.

Further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June.

For full details of the Job Retention Scheme, visit the government website: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme#how-to-claim

Self Employed Income Support Scheme:

This SEISS grant is available to self-employed individuals whose income has been adversely impacted by COVID-19. The link below provides full details of the scheme:

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

Applications for the first grant close on 13 July 2020 and a taxable sum of 80% of average monthly trading profits, capped at £7,500, may be claimed.

The Chancellor has now announced that the self-employed income support grant will be available to cover a further three months income.

Applications for the second grant open in August 2020 and individuals will be able to claim 70% of average monthly profits capped at £6,570 in total.

PLEASE NOTE that you do not have to have claimed for the first grant to be eligible for the second, as it is understood that business may have only been impacted in the later phase.

Full Guidance on the changes will be published on 12 June 2020.

If you have any queries regarding either of the above, please do not hesitate to contact us on 01892 507280 or info@wellsassociates.com.