Coronavirus Job Retention Scheme
The Chancellor has announced that CJRS will be extended until the end of March 2021 for all parts of the UK. For claim periods running to 31 January 2021, the UK Government will pay 80% of employees’ usual wages for hours not worked, up to a cap of £2,500 per month. The UK Government will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more.
It was also confirmed that the Job Retention Bonus will no longer be paid in February 2021, as CJRS will be available at that time. An alternative retention incentive will be put in place at the appropriate time.
Self-Employment Income Support Scheme (SEISS) Grant Extension
The Chancellor has also announced that the UK Government is increasing the overall level of the next SEISS grant from 55% to 80% of trading profits.
This grant will cover a three-month period from the start of November until the end of January. The UK Government will pay a taxable grant which is based on 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500.
The SEISS Grant Extension will last for six months in total, from 1 November 2020 to 30 April 2021. A further grant will cover February to April, as grants will be paid in two lump sum instalments each covering a three-month period. The Government will set out further details, including the level of that grant, in due course.
Full details on checking eligibility for the current grant and how to claim will be published in the week commencing 23 November.
We do hope that these new measures will be of assistance to our clients both from a business and personal perspective, and we will continue to provide updates as the situation evolves.
Please be assured, once again, that we are only a phone call away, and do not hesitate to contact us if we can be of any assistance.