Flexible Furlough & Self-Employment Income Support Scheme

Some very important information around UK wide government schemes has been announced.

Rishi Sunak has announced that the Self-Employment Income Support Scheme (SEISS) will be extended. Those eligible will be able to claim a second and final grant in August. The grant will be worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total. Individuals can continue to apply for the first SEISS grant until 13 July.

The Chancellor announced the extension of the Coronavirus Job Retention Scheme (CJRS). Further details articulate a progressed flexibility to bring furloughed employees back to work on a part time in July, along with an announcement to employers who are going to be requiring to contribute modestly to furloughed salaries from August.

The announcement detailed that from 1 July 2020, employers will be given the opportunity to bring furloughed employees back to work on a part time basis. Businesses will have control when deciding the hours and shift patterns their employees will work upon their return, and will be responsible for paying their wages whilst in work.

The government will continue to pay 80% of people’s salaries during the months of June and July, but the amount of government support will be slowly tapered to reflect the change as people return to work from August 2020. In the following months, businesses will be asked to contribute a modest share, but employees will continue to receive 80% of their salary for the remaining time that they are unable to work.

  • 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.

Source: https://bit.ly/2XSVCXB

Following the announcement of an extension of the scheme on 12 May, The Chancellor also shared details on how the Coronavirus Job Retention Scheme (CJRS) will continue to support jobs and business whilst people return to work.

As always, the Acumen team are here for guidance and support through these times. You can use our resources available on our website here, or give us feedback on how we can further our support for your business here.