Coronavirus (Covid-19) Hub

Covid-19 : Business Support 29.05.20 – Update 35

As anticipated, further details were released in this afternoon’s news briefing in relation to the Coronavirus Job Retention Scheme and the Self-employment Income Support Scheme:

Coronavirus Job Retention Scheme

As previously advised, the scheme will run until the end of October however employers will “share with the government the cost of paying salaries”. The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month. The employer contributions will be staged as follows:

August Employers will be asked to pay national insurance and employer pension contributions
September Taxpayers will pay 70% of the furlough grant, with employers paying 10%
October Taxpayers will pay 60% of the furlough grant, with employers paying 20%
November The scheme will close.

From 1st July the Scheme will be revised to allow furloughed staff to undertake some work, offering employers flexibility to decide on the right arrangements for them and their staff. For instance, an employee could be brought back two days a week, paid for the two days and the furlough scheme covers the other three. To introduce this new “flexible furlough“ from 1st July, the scheme will be closed to new entrants from 30th June. Employers wanting to place new employees on the scheme will need to do so by 10th June, to allow time to complete the minimum furlough period before then.

Self-Employment Income Support Scheme

The Chancellor also confirmed that the self-employment income support scheme will be extended, with applications opening in August for a second and final grant. The final grant will work in the same way as the first, paid out in a single instalment covering three months’ worth of average monthly profits. However the value of the final grant will be 70% of income, up to a total £6,570.

ASM Contacts

ASM Accountants Logo

Grainne Quinn – Magherafelt

Ian Finnegan – Newry

Caroline Keenan – Belfast

Michael P. O’Hare – Dundalk

Alistair Cooke – Dungannon