Updates to the COVID-19 Self Employed Income Support Scheme and Coronavirus Job Retention Scheme - VW Taxation Ltd

Updates to the COVID-19 Self Employed Income Support Scheme and Coronavirus Job Retention Scheme

On Friday 29th May the Chancellor, Rishi Sunak, announced more details about the extension of the Self-Employment Income Support Scheme (SEISS) and the Coronavirus Job Retention Scheme (CJRS).

Self-Employment Income Support Scheme

The Chancellor announced plans to extend the Self-Employment Income Support Scheme for those people whose trade continues to be, or is newly, adversely affected by Covid-19. Eligible self-employed people will be able to claim a second and final SEISS grant in August. This will be a taxable grant worth 70% of their average monthly trading profits for three months, paid in a single lump sum and capped at £6,570.

The eligibility criteria for the second grant will be the same as for the first grant.

Claims for the first SEISS grant, which opened on 13th May, must be made no later than 13th July.

It’s important to note that accountants & tax advisers cannot claim on behalf of a client, however, we can talk you through the process and ensure that you have the relevant information to hand.

Let’s hope HMRC sort out their act prior to the second grant going live as I am aware of many clients who claimed their grants on or around 13th May and are still yet to receive a penny!!

More information about the second SEISS grant will be made available on GOV.UK on 12th June.

Coronavirus Job Retention Scheme

The Chancellor also announced three changes to the job retention scheme:

  1. From 1st July 2020, the scheme will be made more flexible to enable employers to bring previously furloughed employees back part time and still receive a grant for the time when they are not working.
  2. From 1st August 2020, employers will have to start contributing to the wage costs of paying their furloughed staff. The employer contribution will gradually increase in September and October.
  3. The scheme will close to new entrants from 30th June 2020. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full three-week period prior to 30th

As always, stay vigilant about scams, which may mimic government messages as a way of appearing authentic and unthreatening. Please forward any suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599.

If have any questions about how your tax and accounts, please do not hesitate to contact us.

We are here to help.

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VW Taxation
VW Taxation

VW Taxation are self employment tax specialists based in Portsmouth. We specialise in tax accounting for construction contractors.

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