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Self-Employment Support Scheme Extended and Furlough Scheme Amended

01 June 2020/Categories: Grants_and_Funding

The Self-Employment Income Support Scheme (SEIS) is being extended, in a move the Government says will give more security to individuals whose livelihoods are adversely affected by coronavirus in the coming months.

Those eligible under the SEISS will be able to claim a second and final grant in August. The grant will be worth 70% of their average monthly trading profits, paid out in a single instalment covering three months' worth of profits, and capped at £6,570 in total.

The Chancellor has also set out more details on how the Coronavirus Job Retention Scheme (CJRS) will continue to support jobs and business as people return to work, following the announcement of an extension of the scheme on 12 May.

From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time. This is a month earlier than previously announced to help support people back to work.

From August 2020, the level of government grant provided through the CJRS will be slowly tapered to reflect that people will be returning to work. For June and July, the Government will continue to pay 80% of people's salaries. In the following months, businesses will be asked to contribute a share, with individuals continuing to receive that 80% of their salary, covering the time they are unable to work.

The updated SEISS and CJRS schemes will continue to operate UK-wide. The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus.

Announcing the changes, Chancellor Rishi Sunak said:

'We stood behind Britain's businesses and workers as we came into this crisis and we stand behind them as we come through the other side.

'Now, as we begin to re-open our country and kickstart our economy, these schemes will adjust to ensure those who are able to work can do so, while remaining amongst the most generous in the world.'

Individuals can continue to apply for the first SEISS grant until 13 July 2020. Applications for the second grant will open in August.

Claims for the CJRS will be restricted to employers currently using the scheme and previously furloughed employees from July onwards and the scheme will close to new entrants on 30 June 2020. From 1 July, employers will be able to agree any working arrangements with previously furloughed employees.

How To Apply

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 2020, 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.

Applications are now open. Details of what applicants need to make a claim are available at https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

Applicants will be able to submit information to HMRC about the employees that have been furloughed and their earnings.

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