Extended Furlough Update

The details of Coronavirus Government support is constantly shifting. Below are the most up-to-date (as of this morning…) details we have.

The Coronavirus Job Retention Scheme

• The Coronavirus Job Retention Scheme (‘CJRS’ or ‘furlough’) is extended from 31 October to the end of March 2021. (Fingers crossed the vaccine will make further extensions unnecessary.)
• Employers can claim CJRS for employees who were employed on 30 October as long as a PAYE RTI submission was made to HMRC between 20 March and 30 October.
• There is no maximum number of employees an employer may claim under the new CJRS rules.
• From 1 November 2020 employers can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month.
• Employers can retrospectively furlough someone with effect from 1 November so long as the agreement occurs on or before 13 November(tomorrow!)
• Claims need to be filed by the 14th of the following month.
• As before employers must continue to confirm in writing to the employee that they have been furloughed and keep documentation for five years.

Self-Employment Income Support Scheme

• The Self-Employment Income Support Scheme (‘SEISS’) grant scheme for the self-employed is extended and increased.
• The current stage covers from November to January with an additional stage for February to April.
• The eligibility criteria remain fairly broad.
• The current SEISS is at 80% of average profits, with a maximum of £7,500 for the period.

Much of the previously announced support is still available, with extended deadlines in some cases, including:

• Cash grants for businesses closed due to lockdown or local restrictions
• Business loans (Bounce-back and CBILS) with very favourable terms, payment and interest holidays. etc
• Mortgage and loan payment holidays remain extended

The Job Support Scheme (‘JSS’) is deferred indefinitely.

The Job Retention Bonus of £1,000 per retained employee is cancelled but may be replaced down the line…