Coronavirus Job Retention Scheme (as revised 29 May)
The Coronavirus Job Retention Scheme (CJRS) is being extended from 1 July to allow greater flexibility, albeit with increasing costs to employers:
1. From 1 July 2020, the scheme has been made more flexible to enable employers to bring previously furloughed employees back part time and still receive a grant for the time when they are not working.
2. From 1 August 2020, employers will have to start contributing to the wage costs of paying their furloughed staff and this employer contribution will gradually increase in September and October.
3. The scheme has already closed to new entrants.
After July the scheme will be modified as the government gradually withdraws support for furlough. The scheme will run until the end of October with employers sharing more of the cost of furlough. The payments by employers will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month. The employer contributions will be as follows:
August - Employers will pay national insurance and employer pension contributions
September - HMRC will pay 70% of the furlough grant and employers pay 10%
October - HMRC will pay 60% of the furlough grant and employers pay 20%
November - The scheme will close.
From 1st July the Scheme will be revised to allow furloughed staff to undertake some work, offering employers flexibility to decide on the right arrangements for them and their staff. For example, an employee could be brought back for two days a week, paid for those two days and the furlough scheme covers the other three.
It is important to note that the scheme has closed to new entrants from 30 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 30 June.
See our guidance on how to prepare a furlough claim here
Self-Employment Income Support Scheme (as extended 29 May)
The Self-Employment Income Support Scheme (SEISS) for those people whose trade continues to be, or is newly, adversely affected by COVID-19 (coronavirus). Eligible self-employed people will be able to claim a second and final SEISS grant in August; this will be a taxable grant worth 70% of their average monthly trading profits for three months, paid out in a single instalment and capped at £6,570 in total.
The eligibility criteria for the second grant will be the same as for the first grant with the eligibility period commencing on 13 July. People do not need to have claimed the first grant to claim the second grant: for example, their business may have been adversely affected by COVID-19 (coronavirus) more recently.
Claims for the first SEISS grant, which opened on 13 May, must be made no later than 13 July. Eligible self-employed people must make a claim before that date to receive the first SEISS grant (a taxable grant of 80% of their average monthly trading profits, paid out in a single instalment covering 3 months' worth of profits, and capped at £7,500 in total).
See our guidance on the original grant here