Sentient Group Ltd
 
Info Update 2020/31                                                        Issue Date: 01/06/2020
 
IMPORTANT UPDATE
The Coronavirus Job Retention Scheme is changing
 
As you will recall we previously reported that The Coronavirus Job Retention Scheme (CJRS) was to be extended until October 2020. Moving goal posts are the new normal at the moment and on Friday 29th May the Chancellor, as widely expected, gave details on the changes to the scheme effective from 1st July 2020.

The scheme, as it is now, will close to new entrants from 30 June and thereafter employers will only be able to furlough employees that they have furloughed for a full 3-week period prior to 30 June. This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current requirement of a minimum 3-week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.

From 1 July, employers can bring  employees that have previously been furloughed back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week.

The guidance has helpfully provided a breakdown of what financial assistance will be available over the next few months:
  • June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
  • August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions
  • September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
  • October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.
 
The scheme will close on 31st October 2020.

Further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June and we wait to see if things will change in respect of businesses such as pubs and restaurants who, unless they are allowed to re-open may have no income in order to contribute to the costs of the CJRS.

In addition, the Chancellor announced that the assistance for self employed persons is to be extended
  • Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
  • Applications for the second grant will open in August. Individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
  • The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus. An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by COVID-19 in this later phase.

Further official guidance on the second grant will also be published on Friday 12 June.

As always, we will keep you advised of further developments as soon as we can.
 
 
The advice and comment in this update is not meant to be an authoritative statement of the law. The articles and summaries should not be applied to any specific set of facts and circumstances without seeking further advice. Whilst every care is taken to ensure that the content is correct Sentient cannot accept responsibility for the accuracy of statements made nor the result of any actions taken by individuals after reading such.
 
 
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Ilkley Road
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