A little over a week ago, The Chancellor announced details of how flexible furloughing will work, along with some changes to the scheme moving forward and the key dates. This included brining the option for part-time furloughing forward to 1st July to facilitate a smoother transition back to work as the UK attempts to navigate its way out of the COVID-19 lockdown.
At the same time, a second self-employment income support scheme grant (SEISS) was also announced, this time at 70% of average monthly trading profits compared to the first claim at 80% but otherwise calculated and payable on the same basis as the first.
We’ve provided a summary of some of the key features below for each scheme however here is a link to HMRC’s latest guidance, including a flexible furlough timeline:
Flexible Furlough:
It has already been confirmed that the furlough scheme, originally introduced in March this year, will be available in some way for those that qualify until the end of October 2020. However, we now have some detail on the timeline and tapered rates that will apply, including the impact and changing cost to the employer as the scheme is unwound. As the flexibility comes in and rates change, it is anticipated that many unique and specific circumstances will exist for employers, impacting claims and calculations, making it more important than ever to prepare and keep accurate and precise records of staff movements.
It is also important to note that only those that have already been furloughed will be allowed into the flexible scheme going forward - for those that have been furloughed once (or more) already, there appears to be no issue, but it does mean that anyone being furloughed for the first time will need to have been furloughed by 10th June to serve their 3 weeks minimum furlough period by the end of June 2020 so that they in turn can qualify for the flexible / part-time scheme from 1st July onwards if required.
All furlough claims for periods up to 30th June will need to be made by 31st July and claims for periods commencing 1st July can not be made for more employees than the maximum number claimed for in a previous period.
Second SEISS:
A second grant for the self-employed will be based upon the same eligibility criteria as the first, although calculated at 70% rather than 80% of average profits, subject to a cap of £6,570 second time around.
It is important to note that you do not have to have claimed the first grant (which remains available until 13 July) to claim the second, which will be available in August 2020. It has also been announced that this will be the final SEISS grant to be made available.
More information on both schemes is expected on Friday 12th June.
Take care and stay safe,
Jono, David and all of us at B&T