Self-Employment Income Support Scheme grant extension
The grant extension is for self-employed individuals who are currently eligible for the Self-Employment Income Support Scheme and are actively continuing to trade, but are facing reduced demand due to coronavirus (COVID-19).
1. Who can claim
To be eligible for the grant extension self-employed individuals, including members of partnerships, must:
currently be eligible for the the Self-Employment Income Support Scheme (although they do not have to have claimed the previous grants)
declare that they are currently actively trading and intend to continue to trade
declare that they are impacted by reduced demand due to coronavirus in the qualifying period (the qualifying period for the grant extension is between 1 November and the date of claim)
2. What the grant extension covers
The extension will provide two grants and will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.
The first grant will cover a three-month period from the start of November 2020 until the end of January 2021. HMRC will provide a taxable grant covering 20 per cent of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total.
HMRC are providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.
The second grant will cover a three-month period from the start of February until the end of April. HMRC will review the level of the second grant and set this in due course.
The grants are subject to Income Tax and National Insurance Contributions.
3. How to claim
HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.
Coronavirus Job Retention Scheme - etc
Detailed guidance to help you prepare for the final stages of the Coronavirus Job Retention Scheme (CJRS) and key dates you need to be aware of can be found on GOV.UK.
What you need to do from 1 October
From 1 October HMRC will pay 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work. You will continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. You will need to fund the difference between this and the CJRS grant yourself. You will also continue to pay your furloughed employees’ National Insurance and pension contributions from your own funds. The scheme closes on 31 October and you will need to make any final claims on or before 30 November. You will not be able to submit or add to any claims after this date.
Job Retention Bonus
The Job Retention Bonus allows you to claim a one-off payment of £1,000 for every eligible employee you have furloughed and claimed for through the CJRS and kept continuously employed until at least 31 January 2021. You do not have to pay this money to your employee.
To be eligible, employees must earn at least £1,560 between 6 November 2020 and 5 February 2021 and have received earnings in the November, December and January tax months.
Employees must also not be serving a contractual or statutory notice period for you on 31 January 2021.
You will be able to claim the bonus from 15 February until 31 March, after you submit PAYE information for the period up to 5 February 2021.
For more information, including on what you need to do now if you intend to claim the bonus, go to GOV.UK.
More detailed guidance will be available by the end of January.
You can still claim the Job Retention Bonus if you make a claim for that employee through the Job Support Scheme, as long as you meet the eligibility criteria for both.
New COVID-19 support schemes
The government has announced additional support for businesses and employees impacted by COVID-19 across the UK. Further information on these new schemes is available on GOV.UK.
Job Support Scheme
A new Job Support Scheme will be introduced from 1 November. Under the scheme, which will run for six months, the government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand. You will continue to pay the wages for the hours your staff work.
For the hours not worked, you and the government will each pay one third of their usual wages (capped at £697.92 per month).
You will need to meet your share of the pay for unworked hours, and all your National Insurance contributions and statutory pension contributions, from your own funds.
This means that employees will receive at least two thirds of their usual wages for the hours not worked.
You will be able to claim in December and grants will be paid on a monthly basis.
The Job Support Scheme will be open to employers across the UK even if you have not previously applied under the CJRS.
The scheme will operate in addition to the Job Retention Bonus.
Information on what’s covered by the grant, which employers and employees are eligible, and how to claim, can be found on the Job Support Scheme factsheet.