Those eligible under SEISS will be able to claim a second and final grant in August
On Friday, Chancellor Rishi Sunak announced that the Self-Employment Income Support Scheme (SEISS) will be extended - with those eligible able to claim a second and final grant capped at £6,570.
The grant will be worth 70% of average monthly trading profits, paid out in a single instalment covering three months' worth of profits. The government said that SEISS has so far seen 2.3m claims worth £6.8bn.
Mr Sunak also outlined further details on the extension of the Coronavirus Job Retention Scheme (CJRS), including updated guidance on bringing furloughed employees back part time in July, and a new taper requiring employers to contribute to furloughed salaries from August.
Businesses will be given the flexibility to bring furloughed employees back part time a month earlier than previously announced, from 1 July. Individual firms will decide the hours and shift patterns their employees will work on their return, and they will be responsible for paying their wages while in work.
From August 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. That means that 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 modest share, but crucially individuals will continue to receive that 80% of salary covering the time they are unable to work.
The following will apply for the period people are furloughed:
- June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
- August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions - for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
- September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
- October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.
Chancellor Rishi Sunak said: "Our top priority has always been to support people, protect jobs and businesses through this crisis. The furlough and self-employment schemes have been a lifeline for millions of people and businesses.
"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."
Building industry trust
Tax expert Kevin Hall explains how VAT can improve cash flow
‘Building Financial Resilience of Households in the Private Rented Sector’
At least 82 members furloughed or reduced income