Following previous announcements published earlier this week the government has today announced further extensions to both the Coronavirus Job Retention Scheme and the Self Employed Income Support Scheme.
Extension to the Coronavirus Job Retention Scheme (“CJRS”)
The CJRS (often referred to as the furlough scheme) will now remain open until 31 March 2021. For claim periods running to January 2021, employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. The £2,500 cap 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.
As a result of the extension to the CJRS, the Job Retention Bonus (“JRB”) will now not be paid in February 2021 and a new retention incentive will be deployed at the appropriate time. The purpose of the JRB was to encourage employers to keep people in work until the end of January. As the CJRS is being extended to 31 March 2021, the JRB will no longer apply.
Extension to the Self Employed Income Support Scheme
The Self-Employment Income Support Scheme grant extension provides support to the self-employed in the form of 2 further grants, each available for 3 month periods covering November 2020 to January 2021 and February 2021 to April 2021.
The extension will last for 6 months, from November 2020 to April 2021. Grants will be paid in 2 lump sum instalments each covering a 3 month period.
The first of these new grants will cover the 3 month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant calculated at 80% of 3 months average monthly trading profits, paid out in a single instalment and capped at £7,500 in total. This is an increase from the previously announced amount of 55%.
The Government has already announced that there will be an additional grant covering February 2021 to April 2021. The Government will set out further details, including the level of this grant in due course.
The grants are taxable income and also subject to National Insurance contributions.
If you require information on any of the above please do not hesitate to get in touch with your usual RPG contact.
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