As you may be aware, this afternoon the Chancellor has announced an extension to the Coronavirus Job Retention Scheme (CJRS) along with an increase to the next grant for the self-employed (SEISS) to 80% of average profits across its three-month period.
The statement identified the broad elements of the changes to be made, however we are expecting more detail to emerge and we understand that further guidance will be provided next Tuesday 10 November. Once we are aware of this, we will naturally keep you informed.
The following information outlines the details we have so far.
Changes to the Coronavirus Job Retention Scheme (CJRS)
The CJRS has been extended until 31 March 2021. This extension applies UK wide and not just in England.
Furloughed employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month, with businesses only being required to cover National Insurance (NICs) and employer pension contributions.
The scheme will be reviewed in January 2021 to decide whether economic circumstances have improved enough to ask employers to contribute beyond NICs and pension contributions. Any information for those claim periods from February onwards will be published following the government’s review in January.
The CJRS will open for claims from Wednesday 11 November and claims for November must be made by 14 December 2020. Subsequent claims should be submitted by the 14th of the following month.
You can find more details in relation to the CJRS here on our website.
Job Retention Bonus Scrapped
As a result of the extension of the CJRS until the end of January 2021, the Job Retention Bonus, which provided a one-off payment to keep furloughed staff in employment, is being scrapped. We understand that this will be replaced with a new “retention incentive” and the government have said they will announce details in relation to this at an “appropriate time”.
Job Support Scheme will delayed
In addition, the planned Job Support Scheme will delayed due to the extension of the CJRS/furlough scheme.
Support for the Self-employed (SEISS)
The next self-employed grant, which covers the period November to January, will now increase to 80% of average profits up to £7,500 over the three-month period. This increases the average profit level from 55% which was announced earlier this week.
You can find more details in relation to the SEISS here on our website.
Should you have any questions regarding today’s’ announcement or other financial concerns please do contact us. We are available on our usual phone numbers and email addresses.
Information correct as of 5 November 2020