Those eligible for the scheme will be able to make a second and final claim under the scheme in August.
The grant will be worth 70% of their average monthly profits paid out in a single installment covering 3 months and capped at £6,570 in total
Average of three years profit in first claim £14,500
Per month (£10,150/12) £845.33
Grant receivable (£845.33*3) £2,537.50
• The first grant can be applied for until 13 July
• Applications for the second grant will start in August
• Eligibility criteria for each grant is the same –you need to prove you have been adversely affected by COVID 19
YOU DO NOT NEED TO HAVE CLAIMED THE FIRST GRANT TO BE ELIGIBLE FOR THE SECOND GRANT –IF YOU CAN PROVE YOU HAVE ONLY BEEN AFFECTED BY COVID 19 IN THE LATER PHASE YOU CAN MAKE A CLAIM
Further guidance on the second grant will be issued on June 12th
EXTENSION OF JOB RETENTION SCHEME (CJRS)
From 1 July 2020 employers will have the flexibility to bring employees back part-time
Individual firms can decide the hours and shift patterns the employees work and will be responsible for paying employees for these hours
For June and July, the government will continue to pay 80% of furloughed employees employment costs (that is salary, NIC and pension)
THE GOVERNMENT GRANT SCHEME UNDER CJRS IS BEING TAPERED DOWN FROM AUGUST 2020
The following will apply for the period people are furloughed:
• June and July –government pay 80% of the wages plus Employers National Insurance and pension contributions-capped at £2,500-employers are not required to pay anything
• August –government pays 80% of the wages-capped at £2,500.
The employer has to pay the employers National Insurance and pension contributions (this represents a cost to the employer of approximately 5% of employment costs had the employee not been furloughed)
• September –the government pays 70% of the employee’s wages up to a cap of £2,187.50.
Employers pay 10% of wages plus employers National Insurance and Pensions to make up the 80% (capped at £2,500 per employee) This represents on average 14% of the full employment cost had the employee not been furloughed
• October: The government pay 60% of employee’s wages up to a cap of £1,875
Employers pay Employers National Insurance and Pensions and 20% of wages up to a cap of 80%. For any average claim, this represents 23% of the gross employment cost had the employee not been furloughed
If an employee is furloughed for the whole 8 month period the total cost of employer contributions under the scheme would represent around 5% of the gross employment costs an employer would have incurred had the employee not been furloughed.