Following on from our update last week, the Government have confirmed the following extensions and revisions as follows:

CORONAVIRUS JOB RETENTION SCHEME (CJRS) Extension – main points summarised

• The scheme will remain open until 31^st March 2021
• For claim periods running to January 2021, employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month
• Employers NI and Pension Contributions will be met by employers directly – the grant is only to cover the gross wage cost.
• Employers have the flexibility to use the scheme for any amount of time or shift pattern ie flexible furlough.
• The government will receive the scheme in January.

SELF EMPLOYED INCOME SUPPORT SCHEME UPDATE (SEISS)

• Eligibility remains the same – if you were eligible for the 1^st and 2^nd grants you remain eligible for the latest payment.
• When you claim for the grant – you must declare that your business will continue to trade following the pandemic and that the business is currently actively trading but are impacted by reduced demand due to the virus/or temporarily  unable to do so due to the virus.
• Amount of payment – the grant will cover a 3 month period from 1^st November 2020 until 31^st January 2021 and the grant will cover 80% of average monthly trading profits (matching the first grant paid in May/June 2020).  This will be paid out in a single instalment covering 3 months worth of profits and capped at £7,500 in total.
• Application process – as before the application is made online with the system live on Monday 30^th November 2020

We strongly advise that you think about practical points for tax planning in the coming months, if you would like any advice or support please do not hesitate to contact us in the office.