Coronavirus Job Retention Scheme (July changes)
From 1 July 2021, a further change will take effect for the Coronavirus Job Retention Scheme (‘furlough’), meaning that employers will now have to contribute 10% towards employees’ wages, with the furlough scheme covering 70%. This contribution increases to 20% in August and September.
The employee must continue to receive 80% of their wages whilst on furlough, up to a cap of £2,500 per month. The employer can chose to top up employees’ wages above this level, however this is at the expense of the employer.
Fifth Self-Employed Income Support Grant (SEISS)
The fifth and final SEISS grant will be open for applications from July. This will cover the period May 2021 to September 2021, providing similar support to the earlier grant, and paid as a single instalment.
The amount of the fifth grant will be determined by how much your turnover has reduced in the year April 2020 to April 2021. Further information is expected from early July 2021.
The current guidance indicates that if your turnover has reduced by 30% or more you will receive 80% of 3 months’ average trading profits, up to a maximum of £7,500. This is the same as earlier grants. However, if your turnover has reduced by less than 30%, you will receive 30% of 3 months’ average trading profits, up to a maximum of £2.850.
Further ongoing COVID-19 related support measures are outlined in our earlier article, linked here.