Furlough support and SEISS (Self Employment Income support) update
The Chancellor has been speaking at tonight’s government update to provide further information on Furlough and SEISS support measures. Here is a summary of the changes announced;
Self Employment Income Support
A Further payment will be made in August based on the same calculation as the previous payment but reduced from 80% down to 70% and capped at £6,750. This will be the final payment given before the scheme is closed.
Unfortunately it appears the situation remains the same for those paid via Dividends through a limited company in that no support will be given and the loan schemes will be the only support offered.
The details of how the scheme will be run until its closure were given as follows;
- The scheme will remain in its current format until the end of July, then change to be flexible furlough.
- No new employees can be put on the scheme after the 10th June.
- From 1 July flexible furlough will be offered with staff able to work part time and receive furlough for unworked hours.
- In August employers will be asked to pay the employers national insurance of employees on furlough
- In September the furlough payment will reduce to 70% with employers asked to contribute 10%.
- In October the furlough payment will reduce to 60% with employers asked to contribute 20%.
- Employees will always receive 80% the same as now until the scheme ends on 31st October.
The chancellor stated there will be no further extensions or new schemes.
For those concerned over being able to afford the proposed contributions and needing advice regarding possible redundancies we would recommend speaking to a HR expert. We work closely with Nicki Bidgood at Westcountry HR who is happy to help any of our clients.
As ever as soon as we receive further details we will update you.
If you have any questions please do contact us and we will do our best to reply as soon as we can.