Coronavirus Update 1st June 2020

Coronavirus Update 1st June 2020

As expected the Chancellor has bot extended the term of the “furlough and self-employed support schemes” and at the same time signalled their end.

The details are set out in the announcement in the link below.

https://www.gov.uk/government/news/chancellor-extends-furlough-scheme-until-october

There are several highlight points to note;

Furloughed Employees

1. The existing furlough arrangements will continue to operate as previously announced during June and July (80% of wages, capped at £2,500 per month plus employers NIC and employer stakeholder pension contributions

 

2. In August, the scheme will pay 80% of wages, still capped at £2,500 per month BUT employers will be expected to pay the employers NIC and employer stakeholder pension contributions on behalf of employees who are furloughed

 

3. In September, the scheme will pay 70% of wages, capped at £2,187.50. Employers will be required to pay the employers NIC and employer stakeholder pension contributions on behalf of employees who are furloughed and 10% of the wages of furloughed staff to make the total 80% subject to a cap of £2,500 in total

 

4. In October, the scheme will pay 60% of wages, capped at £1,875. Employers will be required to pay the employers NIC and employer stakeholder pension contributions on behalf of employees who are furloughed and 20% of the wages of furloughed staff to make the total 80% subject to a cap of £2,500 in total

 

5. No further furlough payments will be paid thereafter

The Chancellor also announced that unless a claim has been made by 30 June, no further claims could be made by employers who have not otherwise used the scheme, thereby restricting the scheme in July – October to employers using the scheme and to previously furloughed employees.

Self Employed

The self-employed will be eligible to apply for a further, second, income support grant after 31 July. The grant will be equal to 70% of their average trading profits capped at £6,570 in total.

Unlike with the furlough arrangement, an individual can claim the second grant even if they have no claimed the first grant.

If you need any further details please contact me at chris.cummings@ase-global.com.

Or visit our LinkedIn page for more info:https://www.linkedin.com/company/ase-plc/