CJRS & SEISS Announcement
On Friday evening 29 May 2020, the chancellor announced the final part of the Coronavirus Job Retention Scheme (CJRS) scheme that will run from 1st July until 31st October.
This introduces a new flexible element from the 1st July whereby the employer can elect to pay employees for a certain amount of time and then they can be furloughed for the remainder of the time, e.g. the employer pays for 1 day per week and the furlough scheme pays for 3 days per week, equating to the 80% (capped at £2,500) that remains in place as the minimum the employee will receive.
From 1st August employers will be asked to start contributing more each month with the amount then paid by the furlough scheme reducing month on month; by October the taxpayer only meeting 60% of the total 80% of the employees pay. The details for each month are shown in the table.
It is important to note that the scheme from the 1st July is being treated as a separate scheme from the current one, therefore any employer wanting to claim furlough for an employee in June must have them on leave by the 10th June to qualify for the 3 week minimum.
In addition the government also announced that the Self-Employment Income Support Scheme (SEISS) was to be extended with those eligible able to claim a second grant equating to 70% of their average monthly trading profits, capped at £6,750. Applications for this grant will open in August.
Note : applications for the first grant can still be made until 13th July.