Last week, the Chancellor Rishi Sunak announced updates to the Coronavirus Job Retention Scheme (CJRS) and the Self Employment Income Support Scheme (SEISS).
Coronavirus Job Retention Scheme
From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim the CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week.
The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June.
This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.
For further information on the CJRS, click here.
Coronavirus Self Employment Income Support Scheme
The scheme is being extended. Self Employed individuals will be able to make a claim for a second and final grant in August 2020.
If eligible, the second and final grant will be a taxable grant worth 70% of Self Employed individuals’ average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profits, and capped at £6,570 in total.
For further information on the SEISS, click here.
Coronavirus Information
A summary of the various support offered by the government can be found here.
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Please contact us to find out how the above applies in your circumstances and how you can reduce your tax liabilities and maximise your tax efficiency.
Please note that the above is for general information only and does not constitute financial or tax advice. You should not rely on this information to make or refrain from making any decisions. You should always obtain independent professional advice in respect of your own situation.
