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On
Friday
29th May
2020 the
government
announced
extensions
to both
the
Self-Employed
In coe
Support
Scheme
and the
Coronavirus
Job
Retention
Scheme
to
provide
further
assistance
for
businesses.
Self-Employed
Income
Support
Scheme
The
scheme
currently
allows
you to
claim a
taxable
grant
worth
80% of
your
average
monthly
trading
profits
paid out
in a
single
instalment
covering
three
months’
worth of
profits
and
capped
at £7500
in
total.
If
you’re
eligible
and want
to claim
the
first
grant
you must
make
your
claim on
or
before
13th
July
2020.
To make
your
claim
please
follow
this
link: https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference
This
scheme
is now
being
extended
and you
will be
able to
make a
claim
for a
2nd and
final grant
in
August
2020.
The
online
service
for this
second
stage is
not
available
yet.
If
you’re
eligible
the 2nd
and
final
grant
will be
a
taxable
grant
worth
70% of
your
average
monthly
trading
profits
paid out
and in a
single
instalment
covering
a
further
three
months’ worth
of
profit
and
capped
at £6570
pounds
in
total.
We will
keep you
informed when we
know the
portal
is open
for the
second
grant.
Extension
and
Changes
to
the
Coronavirus
Job
Retention
Scheme
The
government
have
also
announced
not only
an
extension
to the
furlough
scheme
but also
changes
giving
more
flexibility
to
employers
who are
bringing
back
employees
as they
begin to
open
their
business.
More
flexibility
From
1st July
employers
can
bring
back to
work
employees
that
have
previously
been
furloughed
for any
amount
of time
and any
shift
pattern,
while
still
being
able to
claim a
grant
for
their
normal
hours
not
worked.
This
must be
confirmed
to the
employee
in
writing.
Please
note
however
that
when
claiming
the
grant
for
furloughed
hours
employers
will
need to
report
and
claim
for a
minimum
period
of a
week. 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
It is
important
to note
that the
scheme
will
close to
new
entrants
from
30th
June and
from
that
point
onward
employers
will
only be
able to
furlough
employees
that
they
have
furloughed
for a
full
three
week
period
prior to
the 30th
June.
This
means
that the
final
date by
which an
employer
can
furlough
an
employee
for the
first
time
will be
10th
June, in
order
for the
current
three
week
furlough
period
to be
completed
by 30th
June.
Further
guidance
on
flexible
furloughing
and how
to
calculate
claims
will be
published
on the
12th
June and
we will
circulate
these to
you when
they
become
available.
Extension
and
new
contribution
levels
It was
good
news to
many to
hear
that
this
popular
scheme
had been
extended
until
October.
What we
know now
is the
sliding
scale of
contributions
that
employers
will be
required
to make
from the
1st
August
2020.
-
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
– for
the
average
claim,
this
represents
5% of
the
gross
employment
costs
that
they
would
have
incurred
if the
employee
had
not
been
furloughed
-
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.
If you
are a
smaller
employer,
some or
all of
your
employer
NIC
bills
will be
covered
by the
Employment
Allowance,
so you
should
not be
significantly
impacted
by that
part of
the
tapering
of the
government
contribution.
Please
note you
can
always
keep up
to date
with the
very
latest
versions
of
government
support
by
visiting
the
coronavirus page on
our
website.
If you
require
any
further
help or
support,
please
get in
touch.
From
all the
Team at
Maynard
Johns
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