Self Employed Support Scheme and JRS update

June 29th, 2020  |  Published in Uncategorized

If you are self employed and affected by the dreaded lurgy, you should have claimed the SEISS payment by now, see my earlier posts.

Last time the grant was 80% of your average earnings over the last three years. HMRC are going to make a second payment if you are still affected, you can apply in August. This payment is 70% of earnings for 3 months. So whatever you got last time (worked out by HMRC’s computer) this time you should get 7/8 of that. How you apply and log in etc will be the same, just hope that your computer saved the log in details!

Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim. Applications for the second grant will open in August. Individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single installment covering three months’ worth of profits, and capped at £6,570 in total. The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus. An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by COVID-19 in this later phase.

Job Retention Scheme:

For the JRS if you are already furloughing employees you can continue to claim, but the support will taper off. First to go, in August is the employer’s NIC relief, however if you don’t pay that anyway that won’t affect you. You can bring furloughed employees back part time, and claim for the hours they still don’t work. You pay them yourself for the hours they do work.

The scheme updates mean that the following will apply for the period people are furloughed:

  • June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
  • August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
  • September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
  • October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.

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