Hi <<First Name>> here are this week's updates
This week has seen the Government announce further support packages to assist us though Lockdown v2. The Chancellor announced that CJRS will be extended until the end of March 2021, for all parts of the UK, and while we were looking forward to the end of furlough calculations and claims I actually think this is a really positive move as the scheme has largely achieved what it set out to do.
Extension to the Coronavirus Job Retention Scheme (CJRS)
The scheme has been extended to March 21 and for claim periods running to 31st January 2021, HMRC will pay 80% of employees’ usual wages for hours not worked, up to a cap of £2,500 per month. However, unlike when the scheme was set up in March, employers will need to pay Employers NI and Pension Contributions.
The UK Government will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more.
Two significant changes to the eligibility criteria is that from the 1st November an employee that was on payroll as of 31st October is now able to be furloughed either full or part time. Furthermore, employees do not need to have been included on a previous claim.
What is not yet clear is how to calculate a claim considering the new eligibility criteria, but we expect this to be published on Tuesday.
Job Support Scheme
This has been postponed due to the CJRS extention.
Job Retention Bonus Withdrawn
It was also confirmed that the Job Retention Bonus (JRB) will no longer be paid in February 2021, as CJRS will be available at that time. An alternative retention incentive will be put in place at the appropriate time.
Self-Employment Income Support Scheme (SEISS) Grant Extension
The Government is increasing the overall level of the next SEISS grant from 55% to 80% of trading profits.
This grant will cover a three-month period from the start of November until the end of January. The
taxable grant, which is based on 80% of three months’ average trading profits, will be paid out in a single instalment and capped at £7,500.
The SEISS Grant Extension will last for six months in total, from 1 November 2020 to 30 April 2021. A further grant will cover February to April, as grants will be paid in two lump sum instalments each covering a three-month period. The Government will set out further details about the fourth grant in due course, but it is expected to include figures from the 2019-2020 tax year.
Applications for this third grant will open on 30th November.
The deadline for applications has now been extended to 31st January 21.
As legalisation is changing quickly please feel free to get in touch if you have any questions or need any further support. The office number is 01732 44988.
Stay safe and well.