Following the recent announcements from the Chancellor, HMRC have published their latest guidance on the government schemes to assist businesses through the Winter Economy Plan.
All information is correct at the time of publication.
Self-Employment Income Support Scheme (SEISS) Grant Extension
As previously communicated in this blog this scheme has been extended for six months starting November 1st. The Chancellor’s initial position was for the grant to cover 20% of average monthly trading profits, paid out in a single instalment, and capped at £1,875 in total to cover the first three months of this period. However, after public pressure this has now been doubled. This means that the UK government will provide an initial SEISS grant based on 40% of three months’ average trading profits, paid out in a single instalment, and capped at £3,750 in total.
The SEISS will be available to self-employed individuals who temporarily cannot trade as well as those who continue to trade but face reduced demand due to Covid-19. Further guidance on claiming and applications is expected to be issued by HMRC in “mid-November”.
An additional grant will still be available to cover the period February – April 2021. However, the amount won’t be confirmed until closer to the time as “it may be adjusted to respond to changing circumstances”.
Job Support Scheme (JSS)
In light of the tiered lockdown system currently in operation across the nation HMRC have published information on the two JSS schemes in operation, referred to as JSS Open and JSS Closed.
Much like the SEISS it will run for 6 months from 1st November and the values involved will be reviewed after the first 3 months.
JSS Open can be used when businesses are open but employees are working less hours in light of reduced demand. Employees will need to work at least 20% of the hours they normally work to qualify and the government will now pay a contribution of 61.67% of the usual pay for hours not worked, up to a maximum of £1,541.75 per month. Employers will have to pay 5% of the usual pay for the hours not worked by the employee, up to a maximum of £125 per month, and can top this up further if they choose. Overall, this means employees will receive at least two thirds of their usual pay for the hours not worked.
JSS Closed is designed to give support to those businesses who are legally required to close as a direct result of Covid-19 restrictions set by of the four UK governments. The government will fund two thirds of employees’ usual wages for the time not worked, up to a maximum of £2,083.33 per month. There is no requirement for employers to contribute, but they can top up the government’s contribution should they choose to.
Employers will need to cover all employer National Insurance and pension contributions for both JSS Open and JSS Closed.
Further details about how to claim are expected by the end of this month, with the first claims being in arrears from 8th December for paid periods falling in November.
Job Retention Bonus (JRB)
The £1,000 JRB per eligible employee is still valid, which is a one-off reward to employers who have furloughed any staff member but kept them employed throughout this time. The employees must be employed through to 31st January 2021 and employers do not have to pay this money to their employees.
The JRB claim will be open between 15th February – 31st March and you will have had to have submitted PAYE information for the period up to 5th February 2021 on time. Further guidance on the claim process will be published by the end of January 2021.
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