Employees & Self-Employed

Covid-19 Employment Support

The government has introduced a range of measures to safe-guard jobs and help the self-employed during the Covid-19 outbreak.

Employees – understanding your rights at work.

Acas, the Advisory, Conciliation and Arbitration Service, have launched a new website aimed at helping workers impacted by COVID-19 measures to get the relevant advice and support they need and understand their rights at work, including advice on working safely, furlough, working from home, flexible working, holiday, SSP and other useful guidance.

Visit www.acas.org.uk/rights-at-work for more information.

Job Retention Scheme

The Coronavirus Job Retention Scheme is a temporary scheme open to all UK employers  starting from 1 March 2020 until the end of October. It is designed to support employers whose operations have been severely affected by coronavirus (COVID-19).

Employers can use the portal to claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage.

Employers can use this scheme anytime during this period. It is now live and will run until the end of October. The new details are as follows:

  • Furloughed workers across the UK will continue to receive 80% of their current salary, up to £2,500.
  • From August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.
  • The employer payments will substitute the contribution HMG is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

 Caveats 

  • The scheme has closed to new entrants from the 10th of June. From the 30th of June onward, employers will only be able to furlough employees that they have furloughed for a full three-week period prior to 30 June.
  • This means that the final date by which an employer could furlough an employee for the first time was the 10 June, in order for the current three-week furlough period to be completed by 30 June. Employers will have until 31st July to make any claims in respect of the period to 30 June.
  • From 1 July the scheme will only be available to employers that have previously used the scheme in respect of employees they have previously furloughed.
  • This does not mean that an employee has to be furloughed on the 10 June in order to be furloughed after 1 July– 10 June is simply the last date at which an employee could be newly furloughed and complete a full three-week period prior to 30 June. Employees who had completed a full three-week furlough at an earlier stage would also be in scope for furlough from 1 July
  • From 1 July, the number of employees an employer can claim for in any claim period cannot exceed the maximum number they have claimed for under any single previous claim under the current CJRS. So, for example, if an employer had made three claims prior to 1 July, for 12, 24 and 20 employees, the maximum number they could claim for in any claim period following 1 July would be 24, as this is the largest previous claim.
  • Please note that people on paternity and maternity leave who return to work in the coming months will be eligible for the government’s furlough scheme even after the 10th June cut-off date, as announced by the Treasury yesterday (9th June). The full announcement can be found here: https://bit.ly/CJRSParents

Self-Employment Income Support Scheme

This scheme will allow those eligible to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 per month for the next 3 months. 

The grant will be 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. The online service will tell you how we’ve worked your grant out.

Self Employment Income Support Scheme Extension – updated 29th May

The Self-Employment Income Support Scheme will be extended – with those eligible able to claim a second and final grant capped at £6,570

Those eligible under the Self-Employment Income Support Scheme (SEISS), will be able to claim a second and final grant in August. The grant will be worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.

 

For information regarding SSP, furloughing staff and other HR questions, please visit our Legal & HR page.

Self-assessment: self-assessed income tax payments due in July 2020, will now be deferred to January 2021.