As we are sure you are now aware, further announcements were made by the UK Chancellor on 5 November 2020 to extend two of the financial support schemes which were due to end on 31 October 2020. The information below therefore supersedes a number of points within our flyers which were emailed on 26 October and 2 November 2020.
Please see below for further details:
CORONAVIRUS JOB RETENTION SCHEME (CJRS) – EXTENSION TO 31 MARCH 2021
The Chancellor announced that the CJRS will be further extended until the end of March 2021.
The level of financial support is set to remain at 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month. The £2,500 is proportional to the hours not worked.
The government will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more.
Claims can be made by employers across the UK that meet the eligibility criteria. However, a few additional changes were announced last week which will apply from 1 November 2020:
- There are now monthly deadlines for claims. Claims for periods on/after 1 November 2020 must be submitted within 14 calendar days after the month they relate to, unless this falls on a weekend in which case the deadline is the next weekday.
- The Job Retention Bonus will no longer be paid in February 2021 and an alternative retention incentive will be put in place at the appropriate time.
- The launch of the Job Support Scheme has also been postponed.
- Employers will also need to submit any claims for periods up to 31 October on or before 30 November 2020. Claims for periods up to 31 October 2020 will not be accepted after 30 November 2020. Claims are subject to eligibility and the rules in force at the time.
It would also be advisable for employers to take the following steps in relation to periods from 1 November 2020:
- Read the new guidance which provides updated information on deadlines, eligibility criteria and how to calculate the correct claim amount by CLICKING HERE.
- Agree working hours with your employees you wish to furlough from November and agree any changes to their employment contact.
- Work out how much you can claim for your employees using HMRC’s CJRS calculator and examples on GOV.UK.
- Submit any claims for periods from 1 November 2020 no later than 14 December 2020.
- Employers will need to keep the records that support the amount of CJRS grant they claim, in case HMRC need to check it.
SELF EMPLOYMENT INCOME SUPPORT SCHEME (SEISS) – EXTENSION
- An additional two taxable grants were previously announced under the SEISS which will each be available for three month periods covering November 2020 to January 2021 and February 2021 to April 2021.
- The grants will be paid in two lump sum instalments each covering a three month period.
- The third grant will cover the period from 1 November 2020 to 31 January 2021, calculated at 80% of 3 months average monthly trading profits, subject to a maximum of £7,500 in total. This is an increase from the amount stated within our previous flyer of 40%.
- The online service for the third grant will be available from 30 November 2020 for those who are eligible. HMRC will provide full details about claiming and applications in due course.
- The fourth grant will cover February 2021 to April 2021. Details in relation to the level of support and dates for making a claim for this grant are yet to be announced.
- The grants are taxable income and also subject to National Insurance contributions.
We hope the above is helpful. However, as this situation continues to evolve on a day by day basis, the information above is subject to change. Therefore, please look out for any future updates from us.
Alternatively, if you wish to discuss any of the current schemes with us or require any assistance with grant applications, please do not hesitate to contact us on 028 417 64540.