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02.06.20

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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 10th June, then they cannot be put on furlough at a later date.

 

July

  • CJRS v1 (i.e. up to 30th 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 (1/8th 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 31st 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 13th July 2020.
  • See our newsletter dated 17th 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.

 

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