UPDATE - Furlough Extension and SEISS Enhancement

Further to the various updates and announcements over recent days as a result of the new period of lockdown, the Chancellor has today announced further amendments to the Job Retention and Self Employed Income Support Schemes.

Job Retention (Furlough) Scheme

Consistent with the rapidly changing environment at present, the Chancellor has this afternoon revealed a further extension to the furlough scheme taking it through until 31 March 2021.

Anyone on the payroll at 30 October is eligible for furlough (either full-time or flexible) under the extended scheme, which at present commits the government to paying 80% of the wages of furloughed employees (up to £2,500 per month) until at least January 2021.

At that point the government contribution rate will be reviewed, and until then employers (like the arrangement back in August) will remain liable for the employers’ NI and pension contributions.

Additionally employees who were on the payroll at 23 September 2020 but were made redundant or stopped working for the employer from that date can be re-employed and a furlough claim made for them.

As a result of this announcement the Job Retention Bonus (which was due to pay £1,000 per employee returned from furlough pre-31 October and retained until the end of January) has currently been scrapped.

Self Employment Income Support Scheme

The announcement earlier this week promised a claim rate of 80% for the month of November as part of the third SEISS grant covering November to January, giving a total rate of 55% across the period with December and January being payable at 40% of relevant profits.

This has now been extended to 80% for the entire period, essentially increasing the 40% claim rate for December and January in line with the current furlough plans.

The February to April grant has yet to be confirmed.

 If you have any questions regarding this or anything else please get in touch, and for regular updates, announcements and news please check our website (www.dsaprospect.co.uk) and make sure you’re following our LinkedIn page: https://www.linkedin.com/company/dsa-prospect-ltd