Employee Furlough and Self Employed Support November 2020

Published / Last Updated on 03/11/2020

With the announcement that England will move into lockdown again at the stroke of midnight of the evening of 4th November 2020/5th November morning, the government has confirmed extended financial support to the workforce as follows:

Employees and Employers

The Coronavirus Job Retention Scheme (CRJS) will continue from 1 November 2020 rather than being replaced by the new Job Support Scheme which, has now been postponed.

CJRS will continue to pay employers up to 80% of employees furloughed hours.

For example if an employee has contractual hours of 35 hours and is able to still work 20 hours, then the employer will pay the 20 hours in full and the 80% of the employee’s 15 hours.

If the same employee is unable at all e.g. in hospitality, then the government will continue to support 80% of the whole 35 hours lost.

In all cases, employers will still be required to pay employer national insurance contributions in full (unless this is within the £4,000 employment allowance) plus payment of full employer pension contributions under workplace pension rules.

This is capped at a maximum of £2,500 pm per employee.

Self Employed Income Support Scheme (SEISS)

Rather than the government helping self employed with up to 40% of average trade profits, they will now support up to 55% of average trade profits overall, to be paid quarterly.  This is being brought forwards from 16 December 2020 to 30 November 2020 and will be capped with an 80% uplift for November only, meaning quarterly profits up to a maximum payment of £5,160 per quarter (£1,720 pm) at 55% averaged over 3 months.

Contractor/Company Directors

There is little joy limited company directors that pay zero or low PAYE salaries (and usually take dividends) as dividends will continue to not be included and the employee 80% of earned income rule will apply.  Therefore, if you have been declaring low or no PAYE earnings, you will receive little or no support.

It is going to be a tough winter for all.

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