In a bid to continue to support businesses and employees, by protecting livelihoods during the next stage of the Coronavirus crisis, the Chancellor has extended both the Coronavirus Job Retention Scheme (CJRS) and the Self-Employed Income Support Scheme (SEISS).
When will the CJRS come to an end?
In his Spring Budget, the Chancellor confirmed that the CJRS would run until the end of September 2021, with employees continuing to receive 80 per cent of their wages for hours not worked.
In April, May and June, employers will only be required to cover the cost of associated National Insurance (NI) and pensions contributions.
From July onwards, as revival of the economy gets underway, in addition to covering the cost of NI and pensions contributions, they will also be asked to contribute to the cost of hours not worked as follows:
|Month||Employer contribution towards hours not worked (%)|
Fourth and fifth SEISS grants
Support for the self-employed has also been extended, with fourth and fifth SEISS grants confirmed earlier this month.
The fourth grant, which covers the period Feb-Apr, will be worth 80 per cent of three months’ average trading profits, capped at £7,500 and paid in a single instalment.
Claims can be made from late April, but a 2019/20 Self-Assessment tax return must have been filed. This means many newly self-employed individuals will be eligible to receive the fourth grant; though, it is worth bearing in mind that all other eligibility criteria remain the same as the previous grant.
A fifth grant will cover May-Sept, the value of which will be determined by a turnover test; this is to ensure that the support is targeted at those who really need it the most to aid their recovery. If your turnover has fallen by:
- 30 per cent or more, you will receive a grant worth 80 per cent of three months’ average trading profits, capped at £7,500.
- less than 30 per cent, you will receive a grant worth 30 per cent of three months’ average trading profits, capped at £2,850.
We expect further details to be published in respect of both the CJRS and SEISS in due course.
How can George Hay help?
Our payroll professionals, expert business advisers and chartered accountants have been assisting and continue to assist our clients with navigating the CJRS and SEISS and understanding the impact of these schemes on their cash flow.
We will continue to monitor any further developments, in respect of these important measures, with interest.
To discuss your circumstances in more detail with one of the team, or to find out how we support employers across the UK, contact us today.