CORONAVIRUS – FURLOUGH AND SELF-EMPLOYED INCOME SUPPORT SCHEMES FURTHER EXTENDED

On the eve of the budget that is effectively his audition for the short yet oft travelled road from number 11 to 11 Downing Street, our ambition self-styled hero of the nation Chancellor Rishi Sunak has extended both the furlough scheme and the self-employed income support scheme.

The furlough scheme, originally introduced in March 2020, has now been extended until the end of September 2021.

Following the rules and regulations that have governed the scheme for some time, the government will pay up to 80% of the eligible furlough wages for employees unable to work.

Changes are to be introduced however towards the end of the scheme, as employers will be required to contribute 10% of the 80% furlough salary of each employee not working in July, and 20% for the final two months of August and September.

Sole traders will also welcome another instalment of the Self-Employment Income Support Scheme, as another up to £7,500 grant is made available.

The grant will be up to 80% of the average three months trading profits up to the £7,500 cap, again adhering to the rules and regulations previously announced.

However, a very welcome change comes in the form of the inclusion of sole traders who filed a tax return for the first time for the 2019-20 tax year.

If you would like further information on the support available to your business, please contact a member of our team.