The Government have released further details of how the Furlough Scheme and Self Employed Income Support Scheme (SEISS) will work, following the Chancellors announcement that they are to be extended.
New Furlough Scheme –
On the 1st of July the new furlough scheme will commence and will only be eligible for previously furloughed employees.
There will be flexibility to allow employees to return to work on a part-time basis, but then will be furloughed during the hours they are not working. This arrangement will need to be agreed in writing.
An employer will not be able to claim for more furloughed employees than the maximum number claimed for under any previous claim period. Employees will not be able to go on part-time furlough unless they have has a minimum of three consecutive weeks on furlough between 1st March and 30th June.
The government is reducing their contribution to the furlough scheme from the 1st August, meaning employers will have to contribute to the furlough costs as set out below. The employee will continue to receive a minimum of 80% and the employer can decide to top this or not.
June and July – Government contribution 80%, Max £2,500.00 and NI and Pens – no employer contribution
August – Government contribution 80%, Max £2,500.00 – employer contribution NI and Pens
September – Government contribution 70%, Max £2,187.50 – employer contribution 10%, Max £312.50, NI and Pens
October – Government contribution 60%, Max £1,875.00 – employer contribution 20%, Max £625.00, NI and Pens
The caps will be proportional to the hours not worked by the furloughed employee, for example if the employee works 75% of their normal working week, the cap will be set to 25% of the amount shown.
It was also confirmed this week that employers who have employees on parental leave e.g. maternity or adoption etc. and are due to return to work within the next couple of months will still be able to furlough them even if they didn’t have a previous furlough period. This will ensure these employers are not at a disadvantage.
Reminder – You have until 31st July to make any claims in respect of the period up to the 30th June, thereafter you will be unable to claim for that period of the scheme.
Self Employed Income Support Scheme (SEISS) –
The Chancellor confirmed the details of phase two of the SEISS which will cover June – August.
If you had qualified to claim under phase one of SEISS then you can make a claim in August under phase two provided your business is adversely affected on or after the 14th July.
The phase two payment will be paid at a rate of 70% average monthly profits for three months, capped at £6,750
A claim under phase one is not required to claim under phase two.
If you have not claimed under phase one but could have been eligible, claim before 13 July for phase two, which is paid at 80% of average monthly profits for three months, capped at £7,500.
Click Here to check eligibility