With furloughing and the self employment schemes due to end at the end of July, Rishi Sunak has announced how the government will continue to help whilst weaning businesses off government support gradually.
The Self-Employed Income Support Scheme is being extended by 3 months. This will be in the form of another 3 month single grant, but will be the final grant from this scheme.
Those who are eligible will be able to apply for the grant in August. This will pay out up to 70% of average monthly trading profits up to a cap of £6,570 in total.
The eligibility criteria are the same as the first scheme. If you haven’t claimed on the first scheme, and are eligible to, you have until 13 July 2020 to submit a claim. As a reminder, the eligibility criteria are:
- You must have filed a tax return for the 2018/19 tax year;
- Your average trading profit is less than £50,000 per annum;
- You must earn more than 50% of your total income from self-employment.
For more information, and to submit a claim visit the official government page here.
Coronavirus Job Retention Scheme (CJRS)
From 1 July 2020, employers can bring back workers that have previously been furloughed whilst still being able to claim the CJRS grant for any hours not worked.
The scheme is gradually being reduced:
- June and July will continue as 80% of salary up to £2,500 per month.
- From August 2020 employers will be required to pay employer national insurance contributions and pension contributions for the covered amount.
- From September 2020 the payout will reduce to 70% of salary up to £2,187.50 per month. Employers will pay employer national insurance contributions, pension contributions and 10% of salary to top up to £2,500 per month.
- From October 2020 the payout will reduce to 60% of salary up to £1,875 per month. Employers will pay employer national insurance contributions, pension contributions and 20% of salary to top up to £2,500 per month.
Importantly, the scheme will close to new entrants from 30 Jun 2020. From this point onwards, businesses will only be able to furlough employees that have been furloughed for a full 3 weeks prior to 30 June 2020. If you want to take advantage of this scheme, you need to furlough employees prior to 10 June 2020.
For more information, see the government announcement page here.
If you would like to discuss any of these, or other schemes, please do get in contact.