Chancellor Rishi Sunak’s announced on Friday updates to the Furlough scheme and a second SEISS grant, below are the main points that you need to know.
Job Retention Scheme
The government announced a few weeks ago that the CJRS was to be extended until 31st October, on Friday Chancellor Rishi Sunak gave us more information on the changes however further guidance will be published on 12th June.
So, here are the main updates
From 1st 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.
However when claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week.
The scheme will close to new entrants from 30th June
Employees will need to have been furloughed for a full 3weeks prior to 30th June, this means that the 10th June is the last date new employees can be furloughed from.
Employers will have until 31st July to make any claims in respect of the period to 30th June.
CJRS stays the same as it is now.
Flexible furlough begins, Employers will decide how many hours, shift pattern etc. that an employee works, they will be expected to pay as normal these hours. They can then claim 80%, plus employers NI and employers pension contribution of the furloughed hours.
80% of the furloughed hours still claimable however employers will be expected to contribute by paying the NI and pension contributions.
70% of the furloughed hours will be claimable up to a cap of £2,187.50 per employee. Employers would have to contribute the extra 10% of furloughed hours plus employers NI and pension contribution.
60% of the furloughed hours will be claimable up to a cap of £1,875 per employee. Employers would have to contribute the extra 20% of furloughed hours plus employers NI and pension contribution.
November 2020 – Furlough scheme ends
Second SEISS Grant
Those eligible under the Self Employed Income Support Scheme will be able to claim a second and final grant in August.
The grant will be worth 70% of their average monthly trading profits.
This will be paid out in a single payment covering 3 months (June, July, August), and capped at £6,570.
Deadline for claiming the first SEISS grant is 13th July 2020
If you haven’t claimed yet and would like any help with this at all, please feel free to get in touch.
If you would like to feature your business on our blog and get a big shout out on our social media, to show how you have adapted and thrived please get in touch.
All the best
The DL Accounts Team