CORONAVIRUS UPDATE
Details given on the Coronavirus Job Retention Scheme and Self-Employed Income Support Scheme extensions
Coronavirus Job Retention Scheme
The Government’s Coronavirus Job Retention Scheme will remain open until the end of October.
Chancellor Rishi Sunak has announced the following;
- Employers will now need to contribute towards furlough payments
- June and July scheme will continue as before, with no contribution from employers
- From August, employers will be asked to pay national insurance and pension contributions. The 80% of gross pay will still be covered by the Government
- From September, employers will be asked to start paying 10% for the employees’ wages, and the remaining 70% will be covered by the Government
- From October, employers will contribute 20%, and the remaining 60% will be covered by the Government
- From 1st November the scheme will close
He also announced the following for those employers wanting to bring back staff part-time;
- The flexible furlough scheme will start from 1st July, not 1st August, one month earlier than planned
- If employers want to put new employees on furlough, they will need to be put on by June 10th to qualify for the part-time furlough (3-week furlough rules)
- The Government will pay for the days in which the employee is not working, as per their contract e.g. an employee is brought back 2 days a week and their contract states a 5 day working week. The employer will pay their normal wage for the 2 days worked, and the furlough will apply to other 3 working days
- The old scheme will be closed to new entrants on June 30th
Self-Employed Income Support Scheme
Chancellor Rishi Sunak has also announced the following;
- SEISS will be extended for a further 3 months, with applications open in August for a second and final grant
- It will work in the same way as the original grant, whereby the applicant will be paid out in single instalment, covering 3 months of average monthly profits
- To maintain fairness, the grant will be at 70%, instead of 80%, upto a total of £6,570
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