More Information About The CJRS And SEISS Extensions
Good news for employees and the self-employed ...
Posted by Roger Eddowes on 09/11/2020 @ 8:00AM
I've blogged recently about both the Coronavirus Job Retention Scheme (CJRS or Furlough) and the Self-Employed Income Support Scheme (SEISS) being extended. Now we have more detail, I can tell you what's changed ...
More details about the CJRS and SEISS extensions are good new for employees and the self-employed!
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When Lockdown 2.0 was announced, Chancellor Rishi Sunak said that CJRS would be extended for November, deferring the new Job Support Scheme to December. This has now changed with CJRS being given a five-month extension, running until the end of March 2021.
"Employees will continue to receive 80% of their current salary for hours they haven't worked!"
These Furlough payments will be capped at £2,500, and employers will remain responsible for National Insurance and pension contributions. CJRS will be reviewed at the end of January with the Chancellor saying that, "it is clear the economic effects of COVID-19 are much longer-lasting than any lockdown restrictions".
This is great news for employees of businesses affected by the pandemic, but economists project that by the end of March 2021, up to 5 million employees may have been furloughed.
As usual, the employee must be included on an RTI submission before the 1st November, and it is advisable that employers check their employment contracts to cover these changes to Furlough, with the Government stating that a retrospective agreement would be acceptable in light of the speed that lockdown 2.0 happened.
"I recommend you check with your HR team though!"
The other good news for self-employed people is that the Self-Employment Income Support Scheme is also being extended in line with CJRS for employees. Instead of the 80% of trading profits for November and 40% for December and January, the Chancellor announced that HMRC would use 80% of trading profits from all three months instead, up to a maximum of £7,500. This is in line with the 1st SEISS grant you may have claimed, so you'll have an idea of what you'll receive.
The eligibility requirements remain the same now, so if you were eligible for the first and second grants, you will be eligible for this one and possibly the fourth one later in 2021, providing that the Chancellor's review of CJRS and SEISS doesn't tighten things up in January.
HMRC should be sending out initial emails around now to self-employed taxpayers who have registered for previous grants. More details will be emailed to you from 23rd November onwards, and it should include a date from which you can make your claim.
"The fourth SEISS grant will cover February 2021 to April 2021!"
As with all the Government's support schemes, this depends on the economic circumstances of the United Kingdom. Hopefully, a vaccine will be released in the new year, allowing us to return to some sort of normal towards the middle of next year.
Don't forget the Government has also announced a raft of other measures, including cash grants for closed businesses, one-off payments via Local Authorities, plans to top up Bounce Back Loans and extended mortgage repayment holidays.
I'll blog more about those as information become available.
Until next time ...
Would you like to know more?
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About Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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