FINANCE
David Crowter, Tax Partner at MHA Carpenter Box, covers some of the latest measures from the Chancellor designed to help mitigate the ongoing impact of Coronavirus.
CONTINUED COVID SUPPORT MEASURES FROM THE BUDGET £2,500 per month. This means, for periods between July and September, you will need to fund the difference between this and the CJRS grants yourself. You can also top up wages above the 80% if you wish, but you are not required to do so.
The Chancellor had a difficult task in this Spring Budget: to indicate how he might balance the Government’s books in the future, while still having to pay out huge sums to support the economy. He said that he would continue to provide ‘whatever it takes’ to protect businesses and jobs during the present crisis, while being honest about the need to ‘fix the public finances’ and setting out his plans to build the future economy.
EXTENSION TO THE CORONAVIRUS JOB RETENTION SCHEME (CJRS)
For periods from May 1st 2021 onwards, you will be able to claim for eligible employees who were on your PAYE payroll on March 2nd 2021. This means you must have made a PAYE Real Time Information (RTI) submission between March 20th 2020 and March 2nd 2021, notifying HMRC of earnings for that employee. The government will continue to pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, up to the end of June 2021. For periods in July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of
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You must continue to pay Employer National Insurance contributions and pension contributions on subsidised furlough pay from your own funds.
SELF-EMPLOYED
£2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875. You will need to continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of
Self-employed people with profits up to £50,000 have been able to claim grants under the Self-Employed Income Support Scheme (SEISS). There have so far been three grants under the SEISS, each covering three months; two amounted to 80% and one amounted to 70% of average monthly profits up to limits of £2,500 and £2,187.50 respectively per month.
❛❛ The Chancellor had a difficult task in
this Spring Budget: to indicate how he might balance the Government’s books in the future, while still having to pay out huge sums to support the economy ❜❜
