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Coronavirus support schemes extended

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As announced by the prime minister on 31 October, the coronavirus job retention scheme (CJRS) is to be extended to cover the next period of ‘lockdown’ in England which is expected to run from 5 November until 2 December 2020.

The CJRS will stay open ‘until 2 December’ according to a briefing issued by HMRC’s press office, with employees receiving 80% of their salary for hours not worked, capped at a maximum of £2,500. Crucially, the scheme will be open to employers which have not previously claimed under the scheme: ‘Neither the employer nor the employee needs to have previously used the CJRS’.

To be eligible, employees must have been on the employer’s payroll at 23.59 on 30 October 2020.

Employers will be required to pay secondary class 1 NICs and pension contributions for the hours the employee does not work. Flexible furlough will be available, allowing employers to bring furloughed employees back to work on a part-time basis. Details of the claims process are expected shortly.

The self-employment income support scheme (SEISS) is also increased to 80% of trading profits for November. The applications window for the grant covering the three months from November to January will open on 30 November, two weeks earlier than previously announced.

The UK government also plans to extend the application deadline for the loan guarantee schemes to the end of January 2021. This will cover the bounce back loan scheme, coronavirus business interruption loan scheme, and coronavirus large business interruption loan scheme. Businesses which have borrowed less than their maximum under the Bounce Back Loan Scheme will be able to top up their existing loan.

The job support scheme has been postponed ‘until the furlough scheme ends’.

Issue: 1508
Categories: News