This evening the Chancellor has announced changes to the furlough scheme and an extension to Self Employed Income Support. Below we have set out the key details available at present.
Coronavirus Job Retention Scheme
The changes to the scheme will take place over time, with employer contributions increasing towards the end of the scheme.
June/July - No changes to employer contributions - none required and the scheme will continue as before (save for flexible furloughing from 1 July)
August 1st - Employers will begin to pay Employers National Insurance and Pension Contributions for any furloughed employees.
September 1st - Employers will begin to pay for 10% of furloughed employees salaries
October 1st - Employers will begin to pay for 20% of furloughed employees salaries
November 1st - the scheme will close
The chancellor also announced that that from July 1st, employers will have maximum flexibility to decide on working arrangements for staff.
Employers will pay for any days that staff are employed, with a furlough claim available for those that staff are not required.
However, the Chancellor also mentioned that the old scheme will close on June 30th, implying that to use the flexible furlough scheme claims must be made by June 10th at the latest for staff to be eligible.
Self Employed Income Support
The self employed income support scheme will be extended, with another grant payable in August.
The eligibility criteria will follow on from the previous scheme, however this will be reduced to 70% of average profits, allowing for a maximum lump sum payment of £6,570.
The full detail of these measures has yet to be released - as ever we will provide further updates next week as more detail emerges.
Hamlyns LLP - Chartered Accountants and Auditors