The government confirmed, on 29 May 2020, that a second taxable grant would be available to eligible self-employed individuals under the Self-Employment Income Support Scheme (SEISS). The deadline for submitting claims for the second grant is rapidly approaching, on 19 October 2020, so those intending to use the scheme should be mindful of this. The second taxable grant is equivalent to 70% of a self-employed individual’s monthly trading profits, and will be paid out in one single lumpsum. This will be to cover three months’ worth of profits and will be capped at a maximum of £6,570. It is available to eligible individuals where their businesses have been negatively impacted by coronavirus either on, or after, 14 July 2020.
Eligibility for the second grant is not reliant on the first grant, so individuals can receive the grant even if they didn’t make a claim for the first one, however, the eligibility for the second grant remains unchanged from the first.
It was announced, within the Winter Economy Plan, delivered by Rishi Sunak, that there would also be an additional two grants provided to those currently eligible for the SEISS, who are continuing to trade but are dealing with reduced demand due to COVID-19. The third grant will cover the period from November 2020 – January 2021 and will be paid in one single instalment equivalent to 20% of average monthly trading profits, capped at a total of £1,875. The fourth grant will relate to February 2021 – April 2021 but HMRC has confirmed that it will review the level of this grant and provide further detail in due course.
Individuals can claim for the second grant online here.
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CIPP Quick Poll results: 56% of businesses not intending to use the Job Support Scheme 21 October 2020 As the Coronavirus Job Retention Scheme (CJRS) closes at the end of October 2020, and the Job Support Scheme (JSS) is introduced from 1 November 2020, the CIPP’s Policy and research team wanted to assess whether many businesses are intending to utilise the new scheme to support them through what will unfortunately inevitably be a difficult Winter. The JSS offers a different level of support to the CJRS and aims to protect ‘viable employment’. One of the key eligibility criteria means that employees will need to be working at least a third of their ‘usual hours’ to qualify for the scheme. The Government will then pay grants equating to a third of the amount relating to the ‘usual hours’ not worked, up to a maximum of £697.92 per month, the employer is required to pay another third, and the employee will see a reduction in their pay of the remaining third. This is not to be confused with the recently announced extension to the JSS, which will be provided to those businesses forced to close due to local lockdown restrictions. In these scenarios, the Government will pay grants equivalent to two-thirds of employee wages, up to a cap of £2,100 per month, with no requirement for the member of staff to work any of their hours.
On the CIPP’s News Online page, the team posted the question:
“Following on from announcements relating to the new Job Support Scheme, are you intending to use it, and if so, has this affected your imminent employment plans?”
The company is not intending to use the Job Support Scheme: 56% No: 26% Yes, this has reduced the number of imminent redundancies: 10% The notification relating to the scheme was after the collective consultation deadline, so we are not using the scheme: 5% I have not heard of the Job Support Scheme: 3%
The results of the Quick Poll seem to indicate that there is not much appetite for the JSS, with 56% of respondents confirming that their company has no plans to utilise the scheme. Businesses that are planning to claim under the JSS
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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