The Budget - CJRS & SEISS

Coronavirus Job Retention Scheme

This scheme has been further extended until 30 September 2021. There will be no change to the amount payable to furloughed staff (80% up to a cap of £2,500 per month) but, from July, employers will be asked to make a contribution to the cost. This will amount to 10% in July and 20% in August and September.

Self-employment Income Support Scheme

It was announced in November that a fourth grant would be forthcoming under this scheme and this has now been confirmed. Eligibility for this grant (and the 5th instalment) will be based on the submission of the tax return for 2019/20 but otherwise on similar criteria to the previous tranches. The fourth grant will be 80% of average trading profits for 3 months up to a maximum of £7,500 - broadly in line with the payments under CJRS.

There will be a fifth grant, probably payable in July, covering the period from May to September. Not all the details are available but it appears that the maximum grant will be the same as before ie 80% of 3 months profits up to a maximum of £7,500. However this will only be payable to those businesses whose turnover has reduced by more than 30% between April 2020 and April 2021. If the reduction is less than 30% the payment will only be 30% of 3 months profits capped at £2,850. This seems, on the face of it, to be far less generous than the CJRS given that it only covers 3 months for a 5 month period and could be a much lower percentage.

Job Retention Bonus

As expected, the Job Retention Bonus has been dropped for the time being. There is a vague implication on the government website that it may return in some slightly different guise in the future but that is probably because they just don't know. The Job Retention Scheme will now continue until the end of March so we are unlikely to see a resurrection of the Bonus until after that.

JRS & SEISS

I think the Chancellor thinks I am short of work! Just when I get to grips with the new rules for furloughing or the self-employment support he decides to change everything again. At least these changes are good news.

The furlough scheme has been extended to the end of March 2020. In the first 3 months of the scheme - November to January - the government will pay 80% of the furloughed employees' wages with the employer only paying the national insurance and pension contributions. For the self-employed the SEISS will pay 80% of average profits for the next 3 months up to a maximum of £7,500. Eligibility rules are as I set out in my most recent posts - at least those haven't changed. Yet!

Job Retention Scheme - November

As previously mentioned in the blog, the JRS will now continue for the month of November. The scheme is back to the generous arrangements of paying 80% of normal wages for time not worked and the employer only pays the NI and pension contributions. Employees can be fully or flexibly furloughed as long as they were on the payroll by 30 October and had been included in an RTI submission by that date. It may also be possible to claim for employees on the payroll in September whose employment had subsequently been terminated if they are now re-employed.

Job Retention Scheme - not dead yet

Just as we thought the JRS was dead and buried and the new Job Support Scheme was about to go live the Prime Minister decides that England needs to go back into lockdown and the JRS will live on for another month (at least?). The scheme appears to have reverted to the August version when employers only pay the national insurance and pension costs and the government picks up the 80% of wages to be paid up to the monthly maximum. Some of the guidance is somewhat contradictory but it seems as though the other rules remain the same - only those already furloughed can be furloughed now, part-time furloughing is acceptable, and the maximum number of employees on furlough is still the same as before.

We'll get to grips with the claim details in the coming days and will keep you up to date. No news yet on whether the planned changes to the SEISS scheme for the self-employed will be enhanced or extended - fingers crossed.

Job Retention Scheme (JRS)

The new version of the JRS came into effect on 1 July. The revised scheme allows employers to furlough staff on a part-time basis as long as they had been furloughed for a full 3 week period under the original scheme by 30 June. Thereafter any pattern of work can be agreed with the employee. The employer pays for the working time as usual and the remainder of their normal hours are covered under the furlough scheme. As before, the employee must be paid at least 80% of normal pay for furlough periods.

From August the employer will have to pay national insurance and pension costs related to periods of furlough and from September only 70% of salary will be refunded dropping to 60% in October. The scheme will end on 31 October. Do remember that employees retain all their usual employment rights during furlough including accruing holiday entitlement. They can be required to take holidays while on furlough although they would need to be paid at their usual holiday rate not just 80%.