For more information on either of the following two extensions, please have a look at the following link to HMRC factsheet
Self Employed Income Support Scheme
Firstly a reminder that your agent cannot make this claim for you. If they do it is likely to result in a delay in your repayment and require you to phone HMRC. Making the claim appears to have been relatively easy from what my clients have said.
Here is the link to our last post on this support https://holdentaxconsulting.co.uk/self-employed-income-support-scheme-update/
The claim period for making the first claim closes on 13 July. The first claim covers the period upto 31 May.
This scheme has been extended. You can make a further claim, calculated as 70% of average monthly trading profits.
The facility to make this second claim will be available in August.
This second claim is capped at £6,750 in total and covers the three months from June to August.
Just a reminder this income is taxable.
If you did not claim the first grant, as your business was not impacted by COVID19, but have since been affected, then you can still make that second claim in August.
Coronavirus Job Retention Scheme
This scheme will be closed for new entrants from 30 June 2020. Employees need to be furloughed by 10 June, in order to have been furloughed for the minimum 3 week period by 30 June.
There are changes in the way it will operate making it more flexible. Employers can bring employees back on a part time basis. Employers have to pay employees in respect of actual hours worked as they normally would under their contract of employment.
The government will continue to pay 80% of the furloughed hours, in July, as well as Employer’s NIC and pension contributions.
For August, Employers will take over the Employer’s NIC and pension contributions in respect of furloughed hours. The government will continue to pay 80% of wages for furloughed hours.
For September, the government will pay 70% of wages for furloughed hours (maximum of £2,187.50). The Employer will pay the extra 10% to get to the 80% of salary. Employers will also pay the Employer’s NIC and pension contributions.
For October, the government will pay 60% of wages for furloughed hours (maximum of £1,875). The Employer will pay the extra 20% to get upto the 80% of salary. Employers will also pay the Employer’s NIC and pension contributions.
With the increased cost to employers, we may sadly start to see the true cost that COVID19 has had on people’s jobs.