With new national Coronavirus restrictions coming into force today, the Chancellor Rishi Sunak announced new measures today for greater levels of Government financial support for businesses and the self-employed.
Job Retention Scheme
The Job Retention Scheme, or furlough scheme, has been extended until the end of March. It was due to end on 1st November and be replaced with the Job Support Scheme, which has now been postponed.
The Scheme will cover 80% of pay up to £2500 per month, with employers required to cover National Insurance and employer pension contributions. The government will review the policy in January to establish whether the circumstances are right to ask employers to contribute more.
The Scheme will be able to be used flexibly, with employees working part time and furloughed part time.
The announcement today is essentially as return to how the scheme was working in August.
Employers can use the scheme for employees who were employed and on payroll by the 30th October 2020.
Employers will be able to claim from 8am on Wednesday 11 November 2020. Full guidance for the Job Retention Scheme extension and how employers can claim will be published on 10 November.
Self Employment Income Support Scheme (SEISS)
The Self Employment Income Support Scheme has been extended to support to self-employed people in the form of two further grants. These grants are available for three month periods covering November 2020 to January 2021 and February 2021 to April 2021.
To be eligible for the grant extension, self employed individuals must have been previously eligible for the SEISS first and second grant.
The Government are providing the same level of support the self-employed as is being provided for employees through the Job Retention Scheme.
The third grant will cover a three month period from 1 November 2020 until 31 January 2021. The Government will offer a grant at 80% of 3 months average monthly profits, paid in a single instalment and capped at £7500. This is an increase from the previously announced amount of 55%.
Applications for the third grant will open on the 30th November 2020. HMRC will release further details about claiming soon.
Further detail on the fourth grant will also be published soon.
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