Skip to main content

UPDATE: Self Employed Income Support Scheme (SEISS) Extension & Coronavirus Job Retention Scheme Changes 01/06/2020

I hope you are well and safely enjoyed the glorious sunshine this weekend.

Well, Rishi has finally announced changes to the Coronavirus Job Retention Scheme (CJRS) and an extension to the Self-Employed Income Support Scheme (SEISS).

The new flexible CJRS, when it fully comes on board, looks as though it will cause a change in how to calculate the claim, moving from calendar days to hours normally expected to work against hours actually worked in the pay reference period. Not sure how that will work for zero hour contracts, but will keep you posted.

The outline of the changes to CJRS and SEISS are stated below:

Self Employed Income Support Scheme (SEISS) Extension

  • The scheme will remain open to cover a second claim for the months of June, July and August.
  • The individual can make the second claim even if they did not make the first one.
  • Individuals who have not made the first claim have until 13th July to do so.
  • The claim portal will be open in August to make a claim. No specific date provided.
  • The claim will be based upon 70% not 80% up £6570 covering the 3 month period.
  • The grant is taxable and should be reflected in the accounting period the grant is received ie 2020/2021 tax year.
  • The criteria for the second claim is the same as the first one.
  • Again, the individual must make the claim (I can not do this for you!).
  • Further information will be released on 12th June.

Coronavirus Job Retention Scheme Changes

  • CJRS will run until 31st October
  • The Scheme will remain as it is until and including 30th June.
  • From 1st July the CJRS will become flexible.
  • From 1st July businesses can bring employees on and off furlough.
  • The Scheme closes to new entrants from 30th June, after that date employers will only be able to furlough employees who were furloughed for the 3 week period up to 30th June. That means those employees were furloughed by, on or before, 10 June in order to have complied with the minimum 3 week furlough period
  • Employers will have until 31st July to make CJRS claims for periods up to 30th June.
  • Businesses will pay wages in full for the period the employee is un-furloughed but can claim under CJRS whilst the employee is furloughed.
  • Employers will need to provide details of the usual hours an employee is expected to work as well as the actual hours worked.
  • Any working hours arrangement between the employer and employee must cover at least one week and be confirmed in writing to the employee.
  • When claiming for the furloughed hours the employer will need to report and claim for a minimum 1 week period.
  • The employer can claim over a longer period such as 2 weekly or monthly cycles.
  • June and July, businesses can continue to claim the full 80% of wages re furloughed employees under the Scheme.
  • From 1st August the CJRS claim remains at 80% of the salary/wages. However, businesses will meet the employer’s pension contributions and employers NI.
  • From 1st September the Government will meet 70% of the wages up to £2190. The remaining 10% to be met by the employer.
  • From 1st October the Government will meet 60% of the wages up to £1875. Employers will need to meet the remaining 20%.
  • From 1st November the CJRS comes to an end.
  • Further information on calculating the flexibility CJRS claims will be made on 12th June.

Like always, if you have any questions, please do not hesitate to ask.
Labels:

Comments

Post a Comment

Popular posts from this blog

More Information- CJRS and SEISS

As we start another week,  I felt it was important for me to share the latest updates with you regarding the Coronavirus Job Retention Scheme and the Self-Employed Income Support Scheme. HMRC Recovery Powers HMRC have put together the draft legislative package to reclaim payments under CJRS and the Self-Employed Income Support Scheme. This is subject to a HMRC consultation which comes to an end on 12th June. Under the draft legislation, HMRC will have the power, by way of a 100% tax charge, to recover payments which were either: Not due Not used to pay wages and PAYE Not used to make pension contributions Penalties will be imposed where there has been deliberate non-compliance. This comes at the same time as HMRC have notified that, to date, they have picked up on nearly 2,000 fraudulent CJRS claims to date. This is, in part, due to ongoing calls to their Fraud hotline number 0800 788887 and also through their online whistle-blower report webpage. Big reminder – 10th June last dat...
Post a Comment
Read more

WARNING - Self Employed Take Note

Who does this affect? Unincorporated businesses (sole-traders, partnerships, and limited liability partnerships) whose accounts year does not end between 31st March and 5th April.  What is the present position? For a particular tax year, you are normally taxed on the net profit per the accounts which end in that tax year. Example of the Present Position Tom has been self-employed for several years and draws up accounts to 30th April each year. His accounts to 30th April 2021 show net profit of £30,000. That is taxable in the 2021/22 tax year. What may change? The Government intend that all self-employed will pay tax and national insurance based upon net profit aligned to the tax year itself and not the accounting year end. Do I have to move my accounting date? No, you can retain your present accounting year end if you want. However, if the change comes into effect, for tax purposes, you will need to report your self-employed income and expenditure incurred based upon the tax year a...
Post a Comment
Read more

Help to Grow - Digital Scheme

What does the Scheme aim to do? This Government backed scheme enables eligible businesses, across the whole of the UK, to obtain a discount of up to 50% on approved software solutions up to a maximum of £5,000 (excluding VAT). This discount covers 12 months’ worth of the approved software's core product costs. What cost does the discount not cover? Planning and delivery services. Any separate one-off payments. Transaction costs. Professional, technical or supplier support services not included as standard. Any costs listed as ‘additional’. Supplier support packages that are provided at additional cost and provide more than standard supplier support offers Value Added Tax (VAT). The discount is applied against the total software product price offered by technology suppliers, exclusive of VAT. What is the eligibility criteria? You have to be a UK company registered with Companies House or on the Financial Conduct Authority’s Mutuals Register. You have between 1 and 249 employees. The...
Post a Comment
Read more