01 June 2020
Business Support Updater 1 June 2020
Key Updates Include
*****Wednesday
10 June deadline for registration for furlough of employees not having
previously been on furlough for a full three-week period. After this date,
employees who have not completed this period in full will not be eligible;
Introduction of tapering in Government contributions to furlough
from 1 August;
Introduction of ‘Flexible Furlough’ from 1 July- Initial
guidance attached and further guidance expected on 12 June;
Second Self-Employment Income Support Scheme Grant available from
August, with the deadline for those eligible to claim the first grant on 13
July;
Deadline for closure of applications to the NI Micro-Business
Hardship Fund Friday 12 June at 6pm;
Online portal to claim back statutory sick pay is live.
Changes
to the Coronavirus Job Retention Scheme (‘Furlough Scheme’)
The UK Government has
confirmed that changes are being made to the Furlough Scheme. These changes
include an approaching deadline for
registering new employees for furlough, the introduction of flexible
furlough from 1 July and the tapering of government contributions from 1
August.
Key Deadline - 10 June for Registration for Furlough
There
is an imminent deadline which is crucial to the future operation of furlough. The
Government will be restricting the scheme to employers already using it and
employees who have already been furloughed.
The Scheme will close to new entrants from 30 June, meaning only
those employees who have completed a full three-week period of furlough prior
to this date will be eligible for the scheme from 1 July onwards. Those who require to use the
scheme should note that any employees who have not completed this period
have to be furloughed by 10 June at the latest to be eligible to complete
the three-week requirement.
Employers will have until 31
July to make any claims for the period up to 30 June. Also, it is important to note that the number of employees an employer
can claim for in any claim period under the new arrangements from 1 July cannot
exceed the maximum number they have claimed for under any previous claim using
the current scheme. Also, claims
which overlap calendar months will no longer be permitted from 1 July.
Members
should study the available guidance and conditions in full carefully to plan
ahead. Members can find the currently available details below:
Government factsheet here,
The Chancellor’s announcement is here
UK Government Guidance on the Scheme is here.
Introduction
of Part-Time Furlough
The
Government has announced that employers will be able to use the furlough scheme
on a flexible basis from 1 July, one month earlier than was
anticipated. Early
guidance sets out that there will be a minimum period of furlough which must be
claimed when operating under this flexible arrangement (one week) and employers
should agree the new arrangement with their employees and record confirmation
of this in writing. Further detailed guidance on flexible
furlough is to be published by the Government on 12 June.
Again, members should
carefully consult the guidance available fully:
The Government factsheet here,
The Chancellor’s announcement here
The UK Government guidance page here.
Summary
Table of Tapering Arrangements - 1 June to 31 October
The Table below shows the
rates available from Government for the hours the employee does not work.
Employers will have to pay employees for the hours they work when using flexible
furlough after 1 July.
|
Time Period
(Inclusive)
|
Government
Contribution
|
Employer Contribution
|
|
1 June to 31 July
|
Government to continue to pay 80% of salary
up to £2,500, plus Employer National Insurance and pension contributions.
|
No employer contribution is required for this
period.
|
|
1 August to 31 August
|
Government to pay 80% of salary up to £2,500.
|
Employer to pay Employer National Insurance
and pension contributions
|
|
1 September- 30 September
|
Government to pay 70% of salary up to
£2,187.50.
|
Employers to pay Employer National Insurance
and pension contributions and 10% of wages to make up the 80% of salary up to
cap of £2,500
|
|
1 October to 31 October
|
Government to pay 60% of salary up to a cap
of £1,875.
|
Employers to pay Employer National Insurance
and pension contributions and 20% of wages to make up the total of 80% salary
up to cap of £2,500.
|
Self-Employment
Income Support Scheme (‘SEISS’)
Deadline
to Claim the First Grant
The
Government has announced that there is a deadline for those applying for the
first SEISS grant of 13 July.
Introduction
of the Second Grant
The
Government has announced those eligible for the Scheme will be able claim a
second and final grant. Applications
will open in August and will apply the same eligibility criteria. The grant will be worth 70% of their
average monthly trading profits, paid out in a single instalment covering three
months’ worth of profits, and capped at £6,570 in total.
The
Government has set out that an applicant does not need to have claimed the
first grant to receive the second grant. For example, the Chancellor’s
statement notes the applicant may only have been adversely affected by COVID-19
in this later period. The Government has
stated that further guidance on the second grant will be published on Friday 12
June.
Further information is
available on the Government Factsheet here, the
Chancellor’s announcement here and
UK Government guidance here.
Deadline
for Applications to Hardship Fund - 12 June
Micro-businesses (employing between 1 and 9 employees)
who were not eligible for the £10K Small Business Support Grant Scheme may be
eligible for the Hardship Fund. Applications will close at 6pm on Friday 12
June.
A
reminder of the full eligibility criteria and link to the applications portal
can be found here.
Coronavirus
Statutory Sick Pay Rebate Scheme
As indicated,
the online applications portal for claiming back statutory sick pay is now live
and can be found here. Government has
updated the guidance to allow for a new claims period from 28 May 2020 where an
employee has been informed by the NHS or public health authorities they have
come into contact with someone with coronavirus. The Government guidance page
for the scheme can be found here.
Coronavirus
Large Business Interruption Loan Scheme
As indicated in the last
Business Updater, members may be interested in the extension of the available
loans to £200 million under the scheme and criteria available for the new
facilities over £50 million. Further information can be found here.
Further
Information
The above
information and that contained in the updater of 21 May 20 will be built into an updated ninth
edition of the business support information notice, which will be made
available in the member’s section of the website. In addition, an updated
business support grid featured in the latest edition of the Writ will be made
available. The Society will continue to monitor developments and update members
on the support measures available. It is important for members also to continue
to monitor government guidance and keep pace with developments in the still
fast-moving picture on business support.
For any
queries in relation to business support, please contact frank.geddis@lawsoc-ni.org