Update – 1st June 2020
COVID-19
Update 1 June 2020
Job Retention Scheme Update
What’s new?
Two key pieces of information.
- We now have clarity on what employers will have to contribute between 1 July and 31 October
- Employees can work part time from 1 July, and you can claim under the job retention for their normal hours not worked. Example below.
How much can I claim and how much will I need to pay as an employer?
The table shows the changing nature of the scheme and does not include the cost of topping up any salary which as always is at your discretion and falls solely to you as the employer to fund.
| Month | Claim under Job retention Scheme | How much does the employer pay? |
| June | 80% of salary up to a max of £2,500 plus employers NI and pension | Nothing |
| July | 80% of salary up to a max of £2,500 plus employers NI and pension | Nothing |
| August | 80% of salary up to a max of £2,500 | Employers NI and Pension Costs |
| September | 70% of salary up to a max of £2,187.50 | 10% of salary to make up furlough salary of 80% up to a cap of £2,500
All Employers NI and Pension Costs |
| October | 60% of salary up to a max of £1,875 | 20% of salary to make up furlough salary of 80% up to a cap of £2,500
All Employers NI and Pension Costs |
Do I have to make up the difference to 80% in September and October?
Yes, employees should continue to receive the 80% of salary covering the time they are unable to work their normal hours.
When can employees start to work part-time?
From 1 July – this is a key change to what was previously announced.
How much part time work can my employee do?
This is entirely at your discretion from 1 July onwards. It is important you keep detailed records of this.
How much can I claim?
You can claim a furlough amount for the days they are not working, and the amount will depend on the month as reflected in the table above.
Example
An employee is contracted to work 5 days and has been furloughed. From 1 July they work 2 days per week
Claim
As an employer you can claim under the Job retention Scheme for the 3 days they would normally work. The amount you can claim for these three days is as illustrated in the table above.
Can I claim for someone on the part-time scheme who hasn’t yet been furloughed?
No, you can’t. After 1 July you will only be able to claim for someone who has been furloughed for at least three weeks prior to 30 June.
Self-Employment Income Scheme
What’s new?
The scheme has been extended to cover the three months to 31 August.
How much can I claim?
The grant will be worth 70% of your average monthly trading profits and capped at £6,570 in total.
When can I apply?
Applications will be available from 1 August and will be handled in the same way as the earlier grant.
When will I receive the money?
This will be paid in one instalment within 6 day of making the application.
Do I have to have claimed the first grant to get the second one?
No, you can have been affected more recently and so claim now even if you didn’t claim the first one.
A reminder of all the eligibility criteria can be found here
Further updates will be provided by government by the 12 June.
Discretionary Grants/Top Up scheme
A reminder that this was an additional grant which is aimed at support to businesses who are struggling to survive due to the Coronavirus shutdown but are unable to access other grant funding.
Who is it for?
The Government has asked local authorities to prioritise a number of businesses including those businesses in shared spaces.
What’s new?
Local Authorities are starting to release details of how to apply for these now and who is eligible. Check out your local authority website.
Links to Manchester and Salford below
https://www.salford.gov.uk/business/business-rates/coronavirus-update/discretionary-business-grant/
https://secure.manchester.gov.uk/forms/form/1656/en/discretionary_grants_for_small_businesses
Government Link https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-furlough-next-steps
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This article is written for the general interest of our clients and is not a substitute for consulting the relevant legislation or taking professional advice. The authors and the firm cannot accept any responsibility for loss arising from any person acting or refraining from acting on the basis of the material included herein.
