On Friday 29th May, Chancellor Rishi Sunak announced that the Coronavirus Self Employed Income Support Scheme is to be extended with a second grant of up to £6,570, an extension from Sunday 31st May when it was due to close. In addition to this, he also set out how the Coronavirus Job Retention Scheme is changing.
Please see below a round-up of this news:
The Coronavirus Job Retention Scheme (CJRS) is changing:
- 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.
- 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. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full three-week period prior to 30th June.
- The final date by which an employer can furlough an employee for the first time will be 10th June, in order for the current three-week furlough period to be completed by 30th June. Employers will have until 31st July to make any claims in respect of the period to 30th June.
- Further guidance on flexible furloughing and how employers should calculate claims will be published on 12th June.
For full details of the Coronavirus Job Retention Scheme: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme
Self-Employment Income Support Scheme:
- This scheme is for self-employed or a member of a partnership and have been adversely affected by coronavirus (COVID-19). The scheme currently allows to claim a taxable grant worth 80% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.
- The grant is not available to a limited company or operating a trade through a trust.
- If eligible, the first grant claim must be made on or before 13th July 2020.
- The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.
You can claim if the following apply:
- you traded in the tax year 2018 to 2019 and submitted your Self-Assessment tax return on or before 23rd April 2020 for that year
- you traded in the tax year 2019 to 2020
- you intend to continue to trade in the tax year 2020 to 2021
- you carry on a trade which has been adversely affected by coronavirus
- Your business could be adversely affected by coronavirus if, for example:
- you’re unable to work because you are shielding, self-isolating, on sick leave because of coronavirus, have caring responsibilities because of coronavirus, had to scale down or temporarily stop trading because your supply chain has been interrupted, have fewer or no customers or clients, staff are unable to come in to work
Self-Employment Income Support Scheme Extension:
This scheme is being extended. You will be able to make a claim for a second and final grant in August 2020.
The online service for the second and final grant is not available yet. Guidance will be updated when claims may be made.
The second and final grant will be a taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profits, and capped at £6,570 in total.
For further details and how to make a claim please use this link: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme#extension
Don’t forget you can find a range of useful guides and resources on our website including a FREE COVID-19 Risk Assessment Template here: https://wenta.co.uk/the-business-bookshelf/
We’ve also just launched a range of new, FREE webinars to help you re-start or re-build your business post COVID-19.
To browse these webinars and to book your free place visit:View free webinars & workshops