COVID 19 – CJRS & SEISS SCHEME

It has been a while since I wrote my last blog post.  I have had a crazy few weeks helping lots of clients, existing and new, work out how to run their businesses with the new restrictions in place.  There have been some important updates regarding COVID 19 legislation in the last couple of days which I wanted to make you aware of regarding CJRS (furlough scheme) and SEISS schemes.

UPDATES TO CJRS Scheme (Furlough Scheme) – COVID 19

I’m sure those employers amongst you are aware of the changes within the CJRS scheme, from 1 July 2020, but I just wanted to do a quick post to make sure you have all the facts to hand.  HMRC’s guidance can be found here.

IMPORTANT – If you want to part time furlough someone from 1 July, they must have been furloughed for AT LEAST 3 weeks before this date. Therefore, the last date you can furlough a member of staff (who hasn’t been furloughed before) is Wednesday 10 June 2020.

From 1 July you will be able to bring previously furloughed staff back on a part time basis.  Here is what you need to know

• You will be able to bring back staff part time, whilst still claiming under the CJRS for those normal hours not worked
• To be eligible, employers must agree with their employee any new flexible furloughing arrangement and confirm the agreement in writing
• You will be need to keep and report, usual working hours and hours that employee worked in a claim period
• For hours worked, you will need to pay the employee as per their employment contract, along with the employers NI and pension contributions
• This claims will be capped at £2,500 for full time wages, exactly as they are under the current scheme – with employers also able to claim employers NI and pension contributions

More details on how to calculate claims will be provided by HMRC on 12 June 2020.

From 1 August the level of the grant will be tapered to reflect the fact that people will be returning to work

• The government will pay 80% of wages up to a cap of £2,500 for the hours the employee does not work (pro rated)
• Employers will pay ALL employers NI and pension contributions

From 1 September 

• The government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work (pro rated)
• Employers will pay ALL employers NI and pension contributions
• Employers must also contribute 10% of the employees wages for hours not worked, up to £312.50

From 1 October

• The government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work (pro rated)
• Employers will pay ALL employers NI and pension contributions
• Employers must also contribute 20% of the employees wages for hours not worked, up to £625

The current CJRS scheme (furlough) is scheduled to end on 31 October 2020.

SELF EMPLOYED INCOME SUPPORT SCHEME (SEISS) – COVID 19

If you haven’t already applied for your first self employed grant, then you should do so now. See my previous blog posts on this topic here. The deadline for filing your claim is 13 July 2020.

There will be a 2nd and final grant available, which will be 70% of average monthly trading profits, paid out in a single payment.  This will be for 3 months profit, and will be based on the same criteria as last time.  This will be capped at £6,570.

You can find the latest details here.

Remember, if your business has not been affected by COVID 19 then you should not make a claim.

I am here to help, just drop me a message https://zebraaccountants.com/contact-zebra-accountants/ or email me wendy@zebraaccountants.com