You may have already seen the update on Friday, but I thought I would summarise the main points, and hopefully this can give you all some foundation to base any decisions on for the immediate future.  Many of our clients return to some form of trading this week, and others now have some idea of how the route back to trading looks for them over the coming weeks and months.  Whatever this looks like for you, we hope that things can return to some level of normality for us all as quickly as possible, and businesses are back to full strength soon.  If you need any assistance with planning for the road ahead, please get in touch.

Enjoy the rest of your Sunday!

Self Employed Income Support Scheme Extended

On Friday it was announced that the SEIS Scheme will be extended, paying another grant in August, which will be the equivalent of 3 months NET earnings, at 70%.  If you have already been able to claim the first grant, then it will be fairly straightforward to work out what you will be entitled to this time around.

For example, if the payment you received last time was £3,000, then you divide this figure by 8 (£375), and then multiply this by 7 (£2,625), to find out the amount HMRC will be paying you in the second grant payment.  This will be capped at a maximum of £6,570.

If you haven't already claimed the first SEISS Grant, you only have until the 13th July 2020 before the applications process closes.

Applications for the second grant do not become LIVE until August, and we will send you the link when we have it.

Furlough Scheme Extended

Rishi Sunak announced on Friday that the Furlough Scheme would be extended, with changes and to summarise these;

• June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
• August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
• September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
• October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.
• Employers will be allowed to bring employees back on a part time basis, paying only for the hours the employee physically works, and the remaining 60-70%, will be picked up by the Government.