Following the weekend announcement of a further lockdown for England, further guidance has been released on the additional measures that have been introduced to help support the economy.
Coronavirus Job Retention Scheme
The Coronavirus Job Retention Scheme (CJRS), which was due to end on 31 October, has been extended, with the UK government paying 80% of wages for the hours furloughed employees do not work, up to a cap of £2,500 for periods from 1 November.
Employers will need to pay all employer National Insurance Contributions (NICs) and pension contributions and can choose to top up their furloughed employees’ wages beyond the 80% paid by the UK government for hours not worked, but they are not required to do so.
Employers will have flexibility to ask employees to work on a part-time basis and furlough them for the rest of their usual working hours or furlough them full-time. The employer will have to cover the wages for any hours worked as well as all employer National Insurance and employer pension contributions.
Employers can claim for employees who were on their PAYE payroll on 30 October 2020. Employers must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March and 30 October 2020, notifying a payment of earnings for that employee.
If employees were on an employers’ payroll on 23 September 2020 (i.e. notified to HMRC on an RTI submission on or before 23 September) and were made redundant or stopped working for them after that date, they can also qualify for the scheme if the employer re-employs them.
Neither the employer nor the employee needs to have previously used the CJRS to now qualify.
We are expecting further details to be released in the next few days to confirm when claims can be made.
The many changes to the support available to employers may be putting a burden on your internal payroll administration. If this is the case, we would be happy to provide you with a quote for the RPG payroll bureau to deal with it for you. Simply contact your usual contact or email info@rpg.co.uk and we will be delighted to help.
Job Support Scheme
The new Job Support Scheme, which was due to start on Sunday 1 November, has been postponed.
Self-Employment Income Support Scheme (SEISS) Grant Extension
The Self-Employment Income Support Scheme (SEISS) Grant Extension will be increased from 40% of average trading profits to 55%.
The opening of the service has been brought forward from 14 December to 30 November to allow for quicker payments.
The SEISS Grant Extension provides support to the self-employed in the form of two lump sum grants, each available for three-month periods covering November 2020 to January 2021 and February 2021 to April 2021.
The first grant will cover the three-month period from 1st November 2020 until 31st January 2021. The Government will provide a taxable grant covering 55% of average monthly trading profits, paid out in a single instalment capped at £5,160.
The grant will be increased from the previously announced level of 40% of trading profits to 80% for November 2020 (then 40% in December and January). This increases the total level of the grant from 40% to 55% of trading profits for 1st November 2020 to 31st January 2020.
The second grant will cover a three-month period from 1st February 2021 until 30th April 2021. The level of the second grant will be set in due course by the government.
The grants are a taxable income and also subject to National Insurance contributions.
To be eligible for the scheme, self-employed individuals, including members of partnerships – must:
- have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
- intend to continue to trade and either:
- are currently actively trading but are impacted by reduced demand due to coronavirus
- were previously trading but are temporarily unable to do so due to coronavirus.
Deadline extended for Government backed funding
The deadline for applying for the Coronavirus Large Business Interruption Loan Scheme, Coronavirus Future Fund, Bounce Back Loans and Coronavirus Business Interruption Loan Scheme have also been extended until 31 January 2021.
Anyone wanting to take advantage of these support packages or requiring assistance with any of the above should contact their usual RPG contact.
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