Today, the Chancellor, Rishi Sunak, announced major changes to aspects of government support available to businesses affected by the pandemic. These are particularly relevant to businesses with furloughed employees and also the self-employed. The changes reflect the growing impact of Covid-19 on an increasing number of businesses facing stricter safety guidelines or temporary closure.
Job Support Scheme
The Job Support Scheme will replace the Coronavirus Job Retention Scheme on 1 November 2020. Big changes to previously released details have been announced. Instead of a minimum requirement of paying 55% of wages for a third of hours, as announced last month, employers will have to pay for a minimum of 20% of usual hours worked, and 5% of hours not worked.
The government will now fund 62% of the wages for hours not worked. This more than doubles the maximum payment to £1,541.75 a month. In the most generous case, the taxpayer will now go from funding 22% of wages to just under half.
To read more, click here.
Self-Employment Income Support Scheme
Rishi Sunak has announced that the third SEISS grant is to be based on 40% of average trading profits. Businesses temporarily unable to trade due to Covid-19 will be eligible. The grant will be capped at £3,750. To claim, you need to confirm that you have had a reduced demand for work, or are temporarily closed, due to Covid-19.
To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:
- have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
- declare that they intend to continue to trade and either:
- are currently actively trading but are impacted by reduced demand due to coronavirus
- were previously trading but are temporarily unable to do so due to coronavirus
To read more, please click here
Are you affected by these changes?
If you have any queries, please talk to the friendly team at Re:Accounts. We’re here to help.