CJRS and SEISS Extension and Amendments
Update 29 May 2020
On 12 May Rishi Sunak announced that the Coronavirus Job Retention Scheme (CJRS) would be extended until the end of October 2020. The changes will allow for some flexibility for furloughed workers to return to work on a part-time basis, and require employers to pay a percentage towards their furloughed employees’ salaries.
A further announcement on 29 May provided more details on the changes to the scheme and an extension to the Self-Employment Income Support Scheme (SEISS)
Coronavirus Job Retention Scheme
A degree of speculation raised since 12 May has now been cleared up with the Chancellor’s announcement last week on the specific changes that will be made to the scheme.
Under the CJRS, furloughed employees can continue to receive 80% of their salaries (capped to £2,500 per month), but:
From 1 July
Businesses will be able to bring back furloughed employees on a part-time basis and will be responsible for paying their salaries while in work. This is a month earlier than previously announced.
Claims will be restricted to employers currently using the scheme and to previously furloughed employees.
This closes the scheme to new entrants on 30 June with the last three weeks furlough to that point commencing on 10 June.
From 1 August
The level of grant provided will be tapered to reflect that staff will be returning to work, with employers paying the national insurance and pension contributions.
The level of grant provided by the government will reduce gradually as follows:
June/July – No changes to the current levels.
August – The government will pay 80% of salaries (capped to £2,500 per month) and employers will pay the Employer’s NI and Pension Contributions.
September – The government will pay 70% of salaries (capped to £2,187.50 per month) and employers will pay Employer’s NI, Pension Contributions and 10% of salaries to make up to 80% total to the cap of £2,500 per month.
October – The government will pay 60% of salaries (capped to £1,875 per month) and employers will pay Employer’s NI, Pension Contributions and 20% of salaries to make up to 80% total to the cap of £2,500 per month.
In addition, from 1 July:
- Claims will no longer be able to overlap months.
- Calculations will factor in the cost of hours worked to hours furloughed.
- Claims for hours not worked will be calculated by reference to usual hours worked in a claim period.
- Employers will report hours worked and usual expected hours of work in a claim period.
- Claims will be restricted to the maximum number of staff included on a single claim in the first phase.
The scheme will end on 31 October 2020.
Self Employment Income Support Scheme
The SEISS has been extended so that those eligible will be able to claim a second and final grant capped at £6,570 (the first grant was capped at £7,500).
Claims, worth 70% of average monthly trading profits, can be made from August, and will be paid out in a single instalment covering three months’ worth of profits, capped at £6,570 in total.
You can continue to apply for the first grant, worth 80% of average monthly trading profits, and capped at £7,500 in total, until 13 July 2020
You do not need to have claimed the first grant to receive the second grant, as you may only have been adversely affected in this later phase. The eligibility criteria for both grants are the same and you will need to confirm that your business has been adversely affected by the coronavirus.
Further guidance on both schemes is expected to be published on 12 June.
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