Latest updates to the CJRS and SEISS schemes announced 5 November

Published: Fri, 11/06/20

I emailed you earlier this week with details of the extensions of the Coronavirus Job Retention Scheme (CJRS) and Self-Employed Income Support Scheme (SEISS), since when there have been a further couple of amendments.

Extension to the Coronavirus Job Retention Scheme

The Chancellor has announced that CJRS will be extended until the end of March‌‌‌ 2021 for all parts of the UK. For claim periods running to 31‌‌‌ January 2021, the Government will pay 80% of employees’ usual wages for hours not worked, up to a cap of £2,500 per month. The Government will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more.

It was also confirmed that the Job Retention Bonus will no longer be paid in Feb‌‌‌ruary 2021, as CJRS will be available at that time.

This latest information applies for CJRS claim periods from 1 November 2020. The final date for claims for the period up to 31 October is still 30‌‌‌ November 2020.

The full guidance for claims from November onwards, including more information on how to calculate a claim, will be published on GOV‌‌‌.UK on Tuesday 10 November. Claims can be made from 11‌‌‌ November 2020.

Self-Employment Income Support Scheme (SEISS) Grant Extension

The Chancellor also announced that the Government is increasing the overall level of the next SEISS grant from 55% to 80% of trading profits.

This grant will cover a three-month period from the start of November until the end of January. The Government will pay a taxable grant which is based on 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500.

The SEISS Grant Extension will last for six months in total, from 1 November 2020 to 30‌‌‌ April 2021. A further grant will cover February to April, as grants will be paid in two lump sum instalments each covering a three-month period.

Full details to check if you are eligible for the current grant and how to claim will be published on GOV‌‌‌.UK in the week commencing 23‌‌‌ November although I expect that, as with the previous self-employed grants, these will only be available to a limited number of self-employed individuals. Despite numerous representations to Government, they are still failing to support the majority of the vital self-employed sector and businesses operated through sole-director limited companies.

Noel Guilford