Following our previous update on 6th May 2020, please find below notable changes that have been released via gov.uk.

Coronavirus Job Retention Scheme (JRS) and flexible working

From 1st July 2020, businesses will be given the flexibility to bring furloughed employees back part time.

Individual firms will decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them and will be responsible for paying their wages while in work.

From August 2020 to October 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work.

Month by Month Summary:

June & July

• The government will pay 80% of wages up to a cap of £2,500.
• The government will pay the relating employer National Insurance (ER NICS) and pension contributions.
• Employers are not required to pay anything.

August

• The government will pay 80% of wages up to a cap of £2,500.
• Employers will pay ER NICs and pension contributions (this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed).

September

• The government will pay 70% of wages up to a cap of £2,187.50.
• Employers will pay ER NICs and pension contributions.
• Employers will pay 10% of wages to make up 80% total up to a cap of £2,500. (this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed).

October

• The government will pay 60% of wages up to a cap of £1,875.
• Employers will pay ER NICs and pension contributions.
• Employers will pay 20% of wages to make up 80% total up to a cap of £2,500. (this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed).

Other items to note:

To enable the introduction of part time furloughing, and support those already furloughed back to work, claims from July onwards will be restricted to employers currently using the scheme and previously furloughed employees.

The scheme will close to new entrants on 30 June, with the last three-week furloughs before that point commencing on 10 June.

From 1 July, employers will be able to agree any working arrangements with previously furloughed employees.

When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week, for grants to be calculated accurately across working patterns.

Self-employment Income Support Scheme (SEISS)

The chancellor has announced that the Self-employment Income Support Scheme will be extended and a second taxable grant can be claimed for eligible individuals.

The scheme will provide a taxable one off grant to self-employed individuals or partnerships, worth 70% of average profits up to a cap of £6,570 in total.

Applications for the second taxable grant will be open in August.

Please note, individuals can continue to apply for the first SEISS taxable grant (80% of average profits up to a cap of £7,500 in total) until 13th July 2020.