News

1st June 2020

Covid-19 Update 1st June 2020

Hello,

Furlough Next Steps

As most of you may have heard, the government have made changes to the furlough scheme which are being implemented earlier than expected.
 
The first changes relate to the level of government support which will reduce over the months to October, when the scheme closes.
For June and July, there will be no changes to the contribution levels, with the government still contributing 80%.
In August, employers will be asked to contribute the National Insurance and Employers pension contributions.
In September, government support will reduce to 70%, with employers contributing 10% and in October government support will reduce to 60% with employers contributing 20%.
 
The current furlough scheme also prevents furloughed employees from carrying out any work. From 1 July 2020 this will be changed to allow staff to return to work on a part time basis. The hours worked by the employee will be paid by the employer and 80% of the non-worked hours will be covered by the furlough scheme (reducing to 70% and 60% as per above)
These changes have been brought forward from August which is hoped to help many businesses manage the return to work.
 
To bring in these changes, the current furlough scheme will be closed on 30th June and moved over to the new scheme. If you have employees you intend to furlough but haven’t yet, please contact us. All furloughed employees will need to be on the scheme by 10th June to qualify for future furlough payments.
 
https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-furlough-next-steps
 
https://www.bbc.co.uk/news/business-52853333
 
Self-Employed Support Scheme (SEISS)
 
You can apply for the current scheme up to the 13th July whereby you qualify for the 80% of average earnings Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
 
However as announced on Friday the new extended scheme will now be available in August. The grant will still be based on average wages and for a 3 month period, however it will be paid at 70% of average earnings rather than the previous 80%. This is to bring the grant inline with the changes to the furlough scheme.
 
As always if you have any questions, please contact us and I hope you’re all staying safe and well.
 
https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-furlough-next-steps
 
Claiming on Business Interruption Insurance
 
I thought it was worth sharing the link below with you, the FCA are looking to assist with claims on business insurance policies due to business interruption. I know many policy holders have been told you are not covered by your current policies but there has been questions over this ever since the COVID-19 situation started.
 
https://www.fca.org.uk/news/statements/business-interruption-insurance-during-coronavirus
 
Wishing you all well as always
 
Very best
 
Nick Hunt