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