Changes to Furlough Scheme & SEISS – Action Required
The Chancellor has recently announced changes to the Government’s furlough scheme. All furloughed employees will continue to receive a minimum of 80% pay (up to a max of £2500) for the next two of months. Employers will then be required to contribute towards costs.
Here is a more detailed breakdown;
|Month||Government Contribution||Employers Contribution|
|June||80% (max £2500 pm) |
+ NI + Pens
|July||80% (max £2500 pm) |
+ NI + Pens
|August||80% (max £2500 pm)||NI + Pension|
|September||70% (max £2190 pm)||10% + NI + Pension|
|October||60% (max £1875 pm)||20% + NI + Pension|
From the 1.06.20 a new more flexible furlough scheme is also being introduced. You can now opt to have employees return on a part time basis and only pay them for the hours they have worked each month. The rest of thier income could be claimed through the furlough scheme up to the cap set out above for the given month.
Only just thinking about furloughing some employees? Be quick. The furlough scheme will be closed to new entrants on 30th June so, in order to be eligible and have a minimum of 3 weeks on furlough, employees will need to be furloughed by 10th June at the latest.
Self Employed Income Support Scheme (SEISS)
There were also changes to the SEISS announced. Eligible individuals can claim a 2nd final grant in August worth 70% of their average monthly trading. The grant will cover 3 months’ profit capped at £6570.
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