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5th November 2020

Job Retention Scheme & Self Employed Income Support Grant

Filed Under: Coronavirus / COVID-19 updates, Tax

In light of increased restrictions due to the coronavirus pandemic, the government is introducing additional measures to support employers, employees, and self-employed.

Coronavirus Job Retention Scheme (CJRS)

The Job Support Scheme has been placed on hold, reinstating the Job Retention Scheme until March 2021*. From 1st November the government will pay 80% of wages for the hours furloughed employees do not work, up to a cap of £2,500. Similar to the rules in August, employers will need to pay all employer national insurance contributions (NICs) and employer pension contributions.

Claims can be made for employees who were included in a PAYE Real Time Information (RTI) submission between 20 March 2020 to 30 October 2020 (23:59). Employees who have been made redundant or stopped working for the company can qualify for the scheme if rehired and included on an RTI submission on or before 23 September 2020.

*The government will review the policy in January 2021 and is subject to change.

Self-Employment Income Support Scheme (SEISS) Grant Extension 

In September the Government announced two further grants under the Self-Employment Income Support Scheme (SEISS) with the extension lasting 6 months to April 2021.

The third grant covering the periods November 2020 – January 2021, will provide a taxable payment calculated at 80% of 3 months average trading profits, capped at £7,500. This is an increase from the previously announced 55%.  The fourth grant covering periods February 2021 – April 2021 will be announced in due course by the government.

To be eligible to claim for the SEISS grant extension, self-employed individuals including members of partnerships must have:

  • Been previously eligible for the SEISS first and second grant
  • intended to continue to trade but are impacted by reduced demand due to coronavirus
  • previously traded but are temporarily unable to do so due to coronavirus

For further information or assistance please contact our office on 01903 300230.

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