PLEASE NOTE THAT THE INFORMATION ON THIS PAGE MAY NO LONGER BE CURRENT. During the coronavirus pandemic, important news and announcements are being made daily. Official advice can change from one day to the next. We are doing our best to keep our COVID-19 information up to date on these two pages - but we recommend you check any information with official government, NHS or other responsible sources before acting on it.

COVID-19 advice and updates for SMEs and the self-employed

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COVID-19 personal finances advice and updates

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On Friday, chancellor Rishi Sunak announced a much-awaited furlough scheme extension, while also confirming the Self-Employed Income Support Scheme (SEISS) will run for another three months.

While good news for many businesses and self-employed people alike, both schemes have undergone significant changes. Unless you’re aware of how the schemes will work, there’s a chance you could miss out. To help, we’ve used this post to summarise how both the SEISS and furlough scheme extension will work.

Furlough scheme extension and changes

The furlough scheme will remain unaltered up to and including 30th June.

From 1st July, a number of major changes come into force:

  • The scheme closes to new entrants from 30th June. After then, you can only furlough people who were furloughed for the three-week period before that date. Your employees must have been furloughed on or before 10th June if you want them to remain part of the scheme from 1st July
  • During July, the government will continue to pay 80% of furloughed employees’ wages. From 1 August, this figure will remain at 80%, but you will have to pay employer’s pension and National Insurance contributions. From 1st September the government subsidy drops to 70% of wages (up to £2,190). After 1st October it falls further to 60% (up to £1,875). In these months, employers have to top up wages to a minimum of 80%.
  • From 1st July, the scheme becomes flexible and you can bring employees on and off furlough. You pay their wages in full for the period they are working, but then claim under CJRS for the period they are furloughed. You will need to provide details of the usual hours an employee is expected to work, as well as the actual hours worked.
  • When claiming for furloughed hours, you’ll need to report and claim for a minimum 1-week period. However, you can claim over a longer period than before – such as 2-weekly or monthly cycles.
  • The furlough scheme comes to an end from 1st November

In summary, the government subsidy will be tapered but you can bring employees on and off furlough as needed.

On 12th June, the government will release further information on how to calculate flexible CJRS claims. We’ll update you then.

Self-Employed Income Support Scheme changes

The changes to SEISS are much simpler.

Essentially, you can make a claim for an average of 70% of monthly profits for June, July and August. (Note that the last grant was for 80%). The new maximum claim will be £6,570 for the three-month period.

You can apply even if you didn’t make the first claim for March, April and May. The claim portal will open in August and, as before, the grant is taxable.

Again, further information is due to be released on 12th June. Thee main point is that, if you’re self-employed and your income has suffered because of COVID-19, you can make a claim to cover the next three months when we get into August.

As always, if you are a THP client and you need advice about any of these schemes, please do get in touch with your account manager.

Avatar for Mark Boulter
About Mark Boulter

Mark Boulter is responsible for the efficient running of the firm’s infrastructure, and ensuring that THP delivers the best client service. Promoting the vision and culture across all branches, people are the key: “I like people who have a fresh approach and I’m happy for them to run with their ideas,” he says.

Communication across departments is crucial and Mark pioneers this. He ensure that people and departments not only talk to each other, but that they share ideas– whether they’re about marketing, finance, sales, strategy or any other topic that can result in us offering a better service. “I think helping to develop the next generation of THP people is essential to our success,” Mark adds. “We’ve a lot of talented people and our way of doing things increasingly attracts ambitious newcomers who are looking for a fresh approach. That’s good for us and even better news for our clients.”

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