Covid-19 Update

Dear Clients

On Friday 29th May the Chancellor announced more details about the extension of the Coronavirus Job Retention Scheme and the Self-Employment Income Support Scheme.
The well-publicised voids in the support previously identified were not rectified and his comments towards the end of the speech were a little condescending; –

“But I do want to acknowledge that we haven’t been able to support everyone in the exact way they would want.

I understand some people have felt frustrated. But you were not and have not been forgotten.

Even if you don’t qualify for the furlough or self-employment schemes, we’ve provided a wide range of support…
…from discounted loans, to tax cuts, mortgage holidays and enhanced welfare.”

I have acknowledged the speed and level of support that has been provided to the majority. It is completely unfair that those who became self employed after 6th April 2019, those who operate limited companies and take small salaries topped up by dividends, and many others have been ignored.

The extensions made include the following:

Coronavirus Job Retention Scheme

The scheme will be made more flexible with employers able to bring back workers on a part time basis after 1st July.
From 1st August employers will have to start contributing to the costs and these contributions will increase in September and October.

The scheme will close to new entrants on 30th June 2020.
This means that employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30th June.

Indeed, good news on the introduction of part time working and little surprise that employers will make contributions but look carefully at the cut-off date for new entrants.

Any employee who has not already been furloughed for 3 weeks and is not furloughed before the 9th June for the rest of this month will not be eligible in July.

Self-Employment Income Support Scheme

This scheme is also extended, and eligible self-employed people will be able to claim a second and final grant in August worth 70% of their average monthly trading profits for three months, paid out in one installment and capped at £6,570.

For full information on the changes see the Gov.Uk website…

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