Coronavirus Support - Latest Update

Coronavirus Support  - Latest Update

From Mark Coleman, Director of Tax

Coronavirus support latest update

The Chancellor has now announced that the Coronavirus Job Retention Scheme (CJRS) will be extended to 31 March 2021 with support at 80% of furloughed employees’ wages/salaries for hours not worked up to a maximum of £2,500 per month.

The government will review in January 2021 whether employers will need to contribute more towards the cost of hours not worked, however, in the meantime the employer’s costs are limited to the employer National Insurance Contributions and employer pension contributions costs for hours not worked.

A consequence of the above is that the Coronavirus Job Retention Bonus for each furloughed employee retained in employment at 31 January 2021 has been withdrawn.

Self employed taxpayers who qualify for the Self Employed Income Support Scheme (SEISS) will now be entitled to a taxable grant equal to 80% of three months’ average trading profits up to a maximum of £7,500.  This is to cover the period from 1 November 2020 to 31 January 2021.  Details of how to claim this will be available from 23 November. 

A further grant will be available covering the period from 1 February 2021 to 30 April 2021 but the level of this grant has not yet been announced.

 

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