The Government’s second Self-Employment Income Support Scheme grant is now open for eligible claims. There have also been changes to the Coronavirus Job Retention Scheme this month. Full details are set out below.
Self-Employment Income Support Scheme (SEISS)
Applications for the second grant opened on 17 August 2020 and will close on 19 October 2020.
This is the second and final taxable grant under the scheme and eligible individuals are able to claim a grant worth 70 per cent of their average monthly trading profits. This will be paid out in a single instalment covering three months’ worth of profit and capped at £6,570 in total.
An individual does not need to have claimed the first grant in order to be eligible for the second and final grant.
To avail of this support you must:
In addition, you must satisfy one of the following conditions:
Examples of how you could have been adversely affected include:
Further guidance to help you decide if you have been adversely affected can be found at https://www.gov.uk/guidance/decide-if-your-business-has-been-adversely-affected-for-the-self-employment-income-support-scheme
Overpayments or ineligible grants
You should keep evidence to confirm your business was adversely affected at the time you made your claim. This could include:
If you think you were not eligible for the grant or have been overpaid you need to tell HMRC and pay back the grant. If you received a SEISS grant before 22 July 2020 you must tell HMRC on or before 20 October 2020; or if you received a SEISS grant on or after 22 July 2020 you must tell HMRC within 90 days of receiving the grant.
If you do not you may have to pay a penalty.
Coronavirus Job Retention Scheme (CJRS)
The rules of this scheme changed on 1 July. From that date employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim the grant for their normal hours not worked.
Unless you’re making a new claim for an employee who is a military reservist or is returning from statutory parental leave, you can only continue to claim through the scheme if:
The amount you can claim for in any single claim period cannot now exceed the maximum number of employees you claimed for under any claim ending by 30 June.
For example, an employer previously submitted 4 separate claims between March and June, one for 10 employees, one for 15 employees, one for 20 employees and one for 30 employees. The maximum number of employees the employer can furlough in any single claim starting on or after 1 July is 30.
In another example, an employer has 50 employees and previously submitted claims between March and June for all of these employees, but not all at the same time. The employer put all 50 employees on furlough and rotated them every three weeks, with a maximum of 25 employees on furlough at any one time. The maximum number of employees that this employer can furlough in any single claim is 25, although all 50 employees are eligible for furlough.
Reduction in Grants
From 1 August 2020, Employers’ National Insurance and pensions contributions have to be paid from the employer’s own resources for all employees, whether furloughed or not. The level of grant available will continue to gradually reduce until October:
Full details of the scheme can be found at:-
Job Retention Bonus
The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the Coronavirus Job Retention Scheme, and who remains continuously employed through to 31 January 2021. Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021. Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January and payments will be made to employers from February 2021.
Employers will be able to claim for employees who:
Employers should ensure that they have complied with their obligations to pay and file PAYE accurately and on time under the Real Time Information (RTI) reporting system for all employees, and that their employee records are up-to-date. Employers should also make sure all of their Coronavirus Job Retention Scheme claims have been accurately submitted and any necessary amendments have been notified to HMRC.
More detail about this process will be published in guidance by the end of September 2020.