The Coronavirus Job Retention Scheme (CJRS) ends 31 October 2020 and is replaced by a new arrangement, the ‘Job Support Scheme’ with effect from 1 November 2020. The new scheme will initially run for 6 months until 30 April 2021, but this will be reviewed in January 2021. There are two strands to the scheme:
•Under the terms of the ‘standard’ Job Support Scheme, where the employer is continuing to operate but employees work reduced hours, HMRC will potentially pay 1/3rd of the employee’s wages up to a maximum grant of £697.92 per month.
•Alternatively, under the ‘Expansion for Closed Business Premises’, where employees are unable to work because the employer has been required to close its premises, HMRC will pay 2/3rds of the employee’s wages up to a maximum £2100 per month (so a maximum grant of £1400 per month).
HMRC have updated their guidance to reflect that the Self-Employment Income Support Scheme (SEISS) is being extended from 1 November 2020.
The extension will provide two grants and will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.
The first grant will cover a three-month period from the start of November until the end of January. HMRC will provide a taxable grant covering 20% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £1,875 in total.
The second grant will cover a three-month period from the start of February until the end of April. HMRC will review the level of the second grant and set this in due course.