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The Government announces extension to Furlough Scheme as well as increased support for the self-employed
Further to the announcement of the second lockdown, the Chancellor has announced an extension to the Furlough Scheme, as well as changes to the Self-Employed Income Support Scheme.
Read below to find out more....
Furlough Scheme
The furlough scheme will now be extended across the UK until the end of March, chancellor Rishi Sunak has confirmed.
Mr Sunak said the scheme will pay up to 80% of a person's wage up to £2,500 a month. He told the Commons that the government will review the policy in January.
The chancellor said his intention was "to give businesses security through the winter".
"The security we are providing will protect millions of jobs," he added.
The furlough scheme subsidises the wages of people who cannot do their jobs, either because their workplace is closed, or because there is no longer enough work for them.
Mr Sunak said it would apply throughout the UK, saying the country had "a Treasury for the whole of the United Kingdom".
As part of the revised scheme, anyone made redundant after 23rd September can be rehired and put back on furlough.
Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme.
Businesses will have flexibility to bring furloughed employees back to work on a part-time basis or furlough them full-time, and will only be asked to cover National Insurance and employer pension contributions which, for the average claim, accounts for just 5% of total employment costs.
The Job Support Scheme, which was scheduled to come in on Sunday 1st November, has now been postponed.
Self Employed
The Chancellor has increased the grant available through the Self Employment Income Support Scheme (SEISS), with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.
In addition, the claims window will now open on 30th November until 14th December, so businesses that are adversely affected by COVID can access a larger grant sooner.
The Government has also extended the deadline for applying for Government-backed loan schemes to 31st January 2021.
At the same time, the chancellor raised guaranteed funding for the UK's devolved administrations by £2bn to £16bn.
But, many people will remain ineligible for help, including the newly self-employed, those whose pay themselves in dividends, freelancers, and sole traders who previously had a trading profit of more than £50,000.
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Disclaimer: The information contained in this article is intended to be a guide and is not intended to be exhaustive. No action should be taken on the basis of information contained herein without obtaining the necessary advice. No responsibility can be accepted for loss or damages occasioned to any person acting or refraining from acting as a result of the material contained herein.
