As we slowly start to emerge from this Coronavirus lockdown,
I am delighted to see the Chancellor Rishi Sunak announce an extension to the
massive economic support package made available by the government.
This will provide flexibility, with
gradual, tapered contributions to help firms restart cautiously and protect
jobs, incomes, and the health of our nation.
Self-Employed Income Support
I know lots of people have been
waiting for news on the future of the Self-Employed Income Support Scheme - so
it is brilliant news that the scheme will be extended.
Applications will open in August
for a second final grant, paid out in a single monthly installment covering
three months' worth of average monthly profits. To maintain fairness alongside
the changes to the job retention scheme, the final grant will be 70%, up to a
total of £6,570.
If you are eligible and haven't
done so already, you can continue to apply for the first taxable grant until
13th July. There
are full details of the scheme and links to an eligibility calculator on my
website, which you can see by clicking here.
Coronavirus Job Retention Scheme
The Chancellor also made key
decisions on the future of the Coronavirus Job Retention Scheme to support our
economic recovery. The scheme has supported more than 8 million jobs from over
a million businesses across the UK. Crucially - throughout the remainder of the scheme, individuals will continue to receive 80% of salary covering the time they are unable to work.
In July - a month earlier than
planned - employers can start to use Flexible Furlough. This means you can bring employees back to work for any amount of time, and any shift pattern.
Whilst at work, employees should be paid their normal wage, but employers can
still claim grants for time spent furloughed.
In the final three months of the
scheme - employers will be asked to start making gradual tapered
contributions.
- In August, the taxpayer contribution to people's wages
will stay at 80%, with employers only being asked to cover National
Insurance and employer pension contributions. For the average claim, that accounts for just 5% of employment costs.
- In September, employers will be asked to start
contributing 10% towards people's salaries - taxpayers will contribute the
remaining 70%.
- And in October, taxpayers will pay 60%, and employers
will contribute 20%.
Then, at the end of October - after eight
months of this massive economic intervention of the government stepping in to
pay wages - the scheme will close. In order to introduce the new flexible
furlough scheme, the old scheme will close to new entrants on July 1st.
Employers wanting to place new employees on the scheme will need to do so by
June 10th to allow time to complete the minimum furlough period before
then.
Full details of all the support
available is available on my Coronavirus website -
guyopperman.co.uk/Coronavirus, and as always, if you can't find the answer you
need, please do not hesitate to get in touch.