The government has announced a replacement for the Furlough scheme. It essentially shifts the burden of support more on the employer instead of the government, maintaining most of the employees income(at least 77% of normal).
The scheme will be open from 1 November 2020 to the end of April 202.1
The employee must be working at least 33% of their usual hours.
For the time worked, employees must be paid their normal contracted wage.
For time not worked, the employee will be paid up to two-thirds of their usual wage.
Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee.
The scheme will open on 1 November 2020 and run for 6 months, until April 2021.
e.g.
For the self employed the SEISS has been extended to include a 3rd and 4th payment. This will be only 20% of average earnings though, not 80% as before.
The first grant will cover a three-month period from the start of November until the end of January. HMRC will provide a taxable grant covering 20 per cent of average monthly trading profits, paid out in a single instalment covering 3 months’worthofprofts,andcappedat£1,875intotal.
The second grant will cover a three-month period from the start of February until the end of April. HMRC will review the level of the second grant in the future.
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