Wednesday, 3 June 2020
Covid-19 Update – Wednesday 3rd June 2020
Please find below updates on the Coronavirus Job Retention Scheme (CJRS) and Self-employment Income Support Grant.
On Friday the Chancellor announced more details about the extension to the Coronavirus Job Retention Scheme (CJRS). I have outlined the key details below:
From 1 July 2020, you will have the flexibility to bring previously furloughed employees back to work part-time. You will be responsible for paying their wages in full for the hours they work, and the government will continue to pay 80% of wages for any of their normal hours they do not work. This will continue up until the end of August with no minimum time that you can furlough staff for. Any working hours arrangement that you agree with your employee must cover at least one week and be confirmed to the employee in writing.
When claiming the CJRS grant for furloughed hours, you will need to report and claim for a minimum period of a week, however you can choose to make claims for longer periods such as on monthly or two weekly cycles if you prefer. You will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked. If your employees are unable to return to work, or you do not have work for them to do, they can remain on furlough and you can continue to claim the grant for their full hours under the existing rules.
We need to be informed of what you are planning so we can make the furlough claim. This needs to be done by the 15th of each month.
Employer contributions - From August, the government grant provided through the job retention scheme will be slowly tapered.
• in June and July, the government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICs) and pension contributions for the hours the employee doesn’t work – employers will have to pay employees for the hours they work
• in August, the government will continue to pay 80% of wages up to a cap of £2,500 but employers will pay ER NICs and pension contributions.
• in September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500
• in October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500
• the cap on the furlough grant will be proportional to the hours not worked.
It’s important to note that the scheme will close to new entrants from 30 June. From this point onwards, you will only be able to furlough employees that you have furloughed for a full three-week period prior to 30 June.
This means that the final date that you can furlough an employee for the first time will be 10 June for the current three-week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.
Coronavirus Self-Employment Income Support Grant (SEISS)
Last Friday an extension of the SEISS scheme for a further 3 months to cover June, July & August was announced. Applications for the first SEISS grant can be made at any time until 13 July. The second grant will open in August and will be a taxable grant worth up to 70% of average trading profits capped at a total of £6,570. The eligibility criteria is the same for both grants.
Let me know if you need anything further.