Business Support Scheme Updates

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

Bideford Bay Chamber of Commerce Business-hub-37

Information kindly supplied by Maynard Johns Accountants.

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