UPDATE: Job Retention and Self Employment Income Support Schemes

Following his announcement in mid-May of upcoming changes to the Job Retention and Self Employment Income Support (SEISS) Schemes, the Chancellor has now provided enhanced guidance on the amendments and their timeframes.

Job Retention Scheme

The changes focus on flexibility and the sharing by the employer of the some of the financial burden, with phased reduction in the government contribution until the end of October when the scheme is due to finish.

An important point of note is that the scheme will close to new furloughed employees from 30 June – from this point onwards only employees furloughed for the minimum three week period prior to this will be eligible for further claims.

Therefore the final date an employer can furlough an employee for the first time to be eligible for the scheme on an ongoing basis is 10 June.

Any claims for the period up to and including 30 June to be made by 31 July.

The summary timeframe for the remaining changes is as follows:

From July

‘Flexible Furloughing’ introduced, whereby employees can return to work part-time with wages paid by employers for days worked.

Employers will need to report and claim via the furlough portal for a minimum period of one week from this point.

There are no changes in government support to this point, with funding of 80% of gross wages and related employers NI/pension contributions available.

From August

The onus to pay the employers NI/pension contributions on the wages of furloughed staff switches from the government to the employer.

No change to the 80% funding provided by the government for gross wages.

From September

Funding from the government drops to 70% (a maximum of £2,187.50 claimable per month), with the employer covering the 10% reduction (as well as the employers NI/pension).

From October 

Funding from the government drops to 60% (a maximum of £1,875 claimable per month), with the employer covering the further 10% reduction (so covering 20% of the gross wages of the furloughed employee, in addition to the employers NI/pension).

End of October

Scheme due to cease.

Self Employment Income Support Scheme (SEISS)

Along with the Job Retention Scheme, the SEISS has been extended to include a second phase of support for the self employed.

The main points are as follows:

• The window for claims for the first phase (intended to cover the months of March – May) remains open until 13 July.
• A second phase designed to cover the months of June to August will commence, with funding of 70% of up to £3k per month for three months (based on average monthly profits taken from the 2017, 18 and 19 tax returns - capped at £50k per annum). Therefore the maximum claim will be £6,570.
• The same eligibility criteria and application method as the first phase first will apply. The application process for the second phase will start in August.
• A claim does not have to have been made in the first phase to allow a claim to be made in the second phase.

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