SEISS scheme extended, Chancellor gives more details on CJRS
The Chancellor has announced the extension of the government’s Self-Employment Income Support Scheme, giving more security to individuals whose livelihoods are adversely affected by coronavirus in the coming months.
Those eligible under the Self-Employment Income Support Scheme (SEISS), which has so far seen 2.3 million claims worth £6.8 billion, will be able to claim a second and final grant in August, the Chancellor said on Friday.
The grant will be worth 70 per cent of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
"Our top priority has always been to support people, protect jobs and businesses through this crisis. The furlough and self-employment schemes have been a lifeline for millions of people and businesses," said Chancellor Rishi Sunak.
More details on CJRS
The Chancellor also set out more details on how the Coronavirus Job Retention Scheme (CJRS) will continue to support jobs and business as people return to work, following the announcement of an extension of the scheme on 12 May.
So far, the CJRS has helped 1 million employers across the UK furlough 8.4 million jobs.
From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time – a month earlier than previously announced. Individual firms will decide the hours and shift patterns their employees will work on their return, the Chancellor noted.
To reflect this return to work, from August 2020, the level of government grant provided through the job retention scheme will be slowly tapered. That means that for June and July the government will continue to pay 80 per cent of people’s salaries, however, in the following months businesses will be asked to contribute a share.
The scheme updates mean that the following will apply for the period people are furloughed:
- June and July: The government will pay 80 per cent of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
- August: The government will pay 80 per cent of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5 per cent of the gross employment costs the employer would have incurred had the employee not been furloughed.
- September: The government will pay 70 per cent of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10 per cent of wages to make up 80 per cent total up to a cap of £2,500.
- October: The government will pay 60 per cent of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20 per cent of wages to make up 80 per cent total up to a cap of £2,500. F
Employers are also being reminded they 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. Employees who believe they are not getting their 80 per cent share can also report any concerns to the HMRC fraud hotline.