Following the Chancellors announcement of the extended support schemes for the Winter Economy Plan last week the financial details have been released.
Self-Employment Income Support Scheme (SEISS) Extension
The SEISS follows the same principles of the two previous grants where essentially if you’re experiencing reduced demand due to Covid-19 then you will be eligible for a further SEISS grant to provide support over the winter months. As before you can still continue to trade even if you receive the grants.
The first grant will cover the three-month period of November 2020 – January 2021. As before it will remain a taxable grant and this time it will cover 20% of average monthly trading profits, paid out in a single instalment, and capped at £1,875 in total.
An additional grant will be available to cover the period February – April 2021. Whilst HMRC are committed to giving the grant the amount won’t be confirmed until closer to the time as “it may be adjusted to respond to changing circumstances”.
Job Support Scheme
The new Job Support Scheme will run for 6 months starting 1st November 2020. Under the scheme, the government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand.
The key points are as follows:
Employees must be registered on the PAYE payroll on or before 23rd September 2020 to be eligible.
Employees work at least 1/3 of their usual hours. The government will consider whether to increase this minimum hours threshold after the first three months of the scheme.
Employers pay staff for the hours worked.
For the missing 2/3 hours not worked the employer and the government contribute 1/3 of the delta each i.e. in total it will cost employers 55%, with the government adding 22%, resulting in the employees receiving 77% pay for their 1/3 hours worked.
The government contribution is capped at £697.92 per employee per month.
The scheme is open to all employees, even if they haven’t been on furlough before.
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