Self-employment Income Support Scheme (SEISS)
The Uk government has announced that the SEISS will be extended, and those eligible for the grant may claim a second grant, capped at £6,750.
There is now a deadline to make a claim for the first grant of 13th July 2020. The second, and final grant can be claimed in August 2020.
The second grant will be 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ profits. The cap for this grant will be £6,750.
The eligibility criteria for the second grant is the same as the first.
Coronavirus Job Retention Scheme (CJRS)
The CJRS is changing as of 1st July 2020. From this date, employers can bring back to work employees who have previously been furloughed, for part time hours and any shift pattern required by the business. The grant can still be claimed for those hours not worked as part of the employee’s usual hours.
The Government will continue to pay 80% of wages up until the end of August 2020, however, from 1st August 2020, the Government will no longer pay the employer’s national insurance and employer’s pension relating to the furlough pay.
From 1st September 2020 the Government will pay 70% of wages, up to a cap of £2,187.50 for the hours an employee does not work. Employers must pay the additional 10% and employer’s NI and pension.
From 1st October 2020 the proportion of wages paid by the Government will be reduced to 60%, with the employer having to make up 20% of wages and pay the employer’s NI and pension.
The amounts due to the employee will still be capped to either 80% or £2,500, whichever is lowest. The cap will need to be apportioned to the hours not worked.
This scheme will close to new entrants on 30th June 2020. From this date onwards, employers may only furlough employees they have furloughed for a full 3 weeks prior to this date. This means the last possible date to begin a furlough period for a member of staff not previously furloughed will be 10th June 2020.
Further guidance regarding the flexible furloughing and how to calculate claims will be available from 12th June 2020.
Statutory Sick Pay due to Covid-19
The portal to reclaim SSP paid to staff due to Coronavirus is now open. You must have had fewer than 250 employees at 28th February 2020 to be eligible.
You do not need a doctor’s fit note from your employee, but you can request either:
- An isolation note from NHS 111 – if they are self-isolating and cannot work because of Covid-19.
- The NHS or GP letter telling them to stay at home for 12 weeks as they are at high risk of severe illness if they contract the virus.
You can reclaim a total of 2 weeks SSP, starting from the first day of sickness if your employee is unable to work because:
- They have Coronavirus symptoms.
- They are self-isolating because someone they live with has symptoms.
- They are self-isolating because they have been notified by the NHS they have come into contact with someone with Coronavirus.
- They are shielding and have a letter telling them to stay home for 12 weeks.
You can claim from the following dates:
- 13th March 2020 – if your employee had symptoms, or lives with someone displaying symptoms of Coronavirus.
- 16th April 2020 – if your employee was shielding due to Coronavirus.
- 28th May 2020 – if your employee has been notified by the NHS they have come into contact with someone who has Coronavirus.
You should keep a record for 3 years after receipt of the rebate of any SSP paid to staff, the dates the employee was absent from work, the reason for the absence (this must be due to Covid-19) and the employees national insurance number.
We will continue to endeavour to keep you updated as changes are announced.
If you need any help understanding or accessing financial support available due to the Coronavirus pandemic, please do not hesitate to contact us!
SAS Accounting is a full service professional accountancy team based in Colchester, Essex. We provide jargon-free, understandable financial support to take the stress out of managing your finances.