5th November 2020 – Job Retention Scheme Update

5th November 2020 – Job Retention Scheme Update

FURLOUGH FANTASTIC – its’ back and it’s back until the end of March 2021

Monday’s update was the Coronavirus Job Retention Scheme (CJRS) would only be effective up until the end of lockdown on 2nd December, after which the previously announced Job Support Scheme (JSS) would take over.

However today, the Chancellor announced that the CJRS will last until the end of March 2021

So, what does this mean for you and your business?

Job Retention Scheme Update

· this means that the original CJRS has effectively been reintroduced and the government will cover 80% of an employees wage (to a maximum of £2500 per month) for hours not worked

· You can also furlough employees that haven’t been furloughed before – as long as they were on your payroll on 30th October 2020 (and your RTI was submitted)

· And ‘flexi- furlough’ is allowed so you can bring employees back to work on a part time basis if you like

· Only employers’ NI and pension contributions will be outside the scope of the scheme

· Anyone made redundant after 23rd September can be rehired and put back on furlough.

This has got to be great news for jobs, for the economy and for small businesses struggling to survive. BUT as we always say, do not forget the Chancellor’s KickStart Programme. After all, wouldn’t you want a free employee for 6 months? Arguably, there has never been a better time to kick start your business.

5th November 2020 – SEISS Update

Self-Employed Income Support Scheme (SEISS)

SUPER-CHARGED ECONOMIC INCOME SUPPORT SCHEME – an acronym often used to describe SEISS.

Not only has the Chancellor continued the furlough scheme until end of March, but today he also updated the SEISS. HMRC were going to pay 80% of average trading profits for November, and 40% for December and January. This will now be set at 80% of average trading profits for all 3 months bringing the maximum up from £5,160 to £7,500.

The mechanics will work in the same way as the previous two grants, being distributed in a single payment. The third grant will open for claims from 30 November. The criteria for qualifying remains the same as the previous two grants as follows:

· Be self-employed or a member of a trading partnership

SEISS Update

· Have lost trading profits due to COVID-19

· File a tax return for 2018-19 as self-employed or a member of a trading partnership.

· Have traded in 2019-20; be currently trading at the point of application (or would be except for COVID 19) and intend to continue to trade in the 2020-2021 tax year

· Have trading profits of less than £50,000 and more than half of your total income comes from self-employment.

HMRC will use the average profits from tax returns in 2016-17, 2017-18 and 2018-19 to calculate the size of the grant. The grant amount to cover the period from February 2021 to April 2021 has not yet been set.

Posted by Wendy Bonham-Carter, 0 comments