News & Important Dates
Extension to the Coronavirus Job Retention Scheme/Removal of £1,000 bonus/ extension to the Self Employment Income Support Scheme (SEISS) Updated 5 November 2020
No sooner than the detail of the weekend statement was released and posted on our website, the Chancellor changed the scheme again! The important announcements were;
An extension of the Coronavirus Job Retention Scheme to 31 March
Removing the £1,000 Job Retention Bonus that was due to be paid to employers in February 2021
Extension of the Self Employment Income Support Scheme to 30 April 2021
Extension to the Coronavirus Job Retention Scheme/removing the £1,000 Job Retention Bonus
The 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.
What you need to do now
If you intend to claim under the CJRS, please look at information published today on how you can check if you’re eligible to claim, and what you need to agree with your employees. You can find this on GOV.UK by searching 'Extension to the Coronavirus Job Retention Scheme'.
This latest information applies for CJRS claim periods from 1 November 2020. The final date for claims for the period up to 31 October is still 30 November 2020.
The full guidance for claims from November onwards, including more information on how to calculate a claim, will be published on GOV.UK on Tuesday 11th November 2020.
Self-Employment Income Support Scheme (SEISS) Grant Extension
The overall level of the next SEISS grant is increased 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 if you are eligible for the current grant and how to claim will be published on GOV.UK week commencing 23 November.