Self-Employment Support & Furlough Scheme Update

Today (Friday 29 May 2020) the Chancellor announced the extension of the Self-Employment Support Scheme and confirmed the next steps of the Coronavirus Job Retention Scheme.

The government’s Self-Employment Income Support Scheme (SEISS) will be extended, so those eligible under SEISS will be able to claim a second and final grant in August.

The grant will be worth 70% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.

The Chancellor also provided more details on how the Coronavirus Job Retention Scheme (CJRS) will continue following the announcement of an extension of the scheme on 12 May.

From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time. This is a month earlier than previously announced to help support people back to work. Individual firms will decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them – and will be responsible for paying their wages while in work.

From August 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. This means that for June and July the government will continue to pay 80% of people’s salaries (up to a cap of £2,500). But in the following months, businesses will be asked to contribute a modest share.  Individuals will continue to receive that 80% of salary covering the time they are unable to work.

In August the government will pay 80% of wages, capped at £2,500 and 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 and Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.

In October the government will pay 60% of wages up to a cap of £1,875 and Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.

Many smaller employers have some or all of their employer NIC bills covered by the Employment Allowance so will not be significantly impacted by the changes.

Read more here on the .gov.uk website.