Employment and Self-Employment
Self Employed Income Support Scheme (“SEISS”) – Grant 4
- Fourth grant has been confirmed – covers the period Feb-Apr 2021
- In a change from earlier grants, the 4th grant will take into consideration the self-employed individual’s 2019/20 tax return (previously 2018/19 and earlier) as long as the 2020 tax return has been submitted to HMRC by 2 March 2021 (if not eligible based on these returns HMRC will look at the earlier tax years to determine eligibility)
- In a further change to earlier grants, businesses will need to confirm they have suffered “a significant financial impact due to coronavirus”
- Payment is 80% of 3 months average trading profit
- Paid in a single instalment capped at £7,500 for the 3 month period
Trading profits must be <£50,000 and no more than 50% of the individual’s total income
- Individuals must have been self-employed and trading in both 2019/20 and 2020/21
- Must be currently trading and impacted due to COVID, or have been trading and temporarily unable to do so due to COVID
- Claims can be made between late April and 31 May
- 1st time claimants will need to provide additional evidence of eligibility in support of their claim e.g. their last P60 and last 3 payslips
- As previously, no support available for owner-managed businesses (i.e. company directors paid largely via dividends)
Further details can be found here.
Self Employed Income Support Scheme (“SEISS”) – Grant 5
- 5th grant has also been announced covering May-Sept, claimable from late July (details to follow)
- 5th grant will be computed based on turnover reductions, above and below 30%
Coronavirus Job Retention (Furlough) Scheme
- Extended to 30 Sept 2021
- For periods ending on or before 30 April 2021, claims can be made for employees who were employed on 30 October 2020
- For periods starting on or after 1 May 2021, claims can be made for employees who were employed on 2 March 2021
- 80% of wages up to £2500 per month for May and June
- 70% of wages up to £2187.50 for July
- 60% of wages up to £1875 for August and September
- Employers to start contributing for hours not worked:
- July – 10% up to £312.50
- Aug and Sept – 20% up to £625
- For all of these months, for hours not worked employees still get 80% of salary
Further details can be found here.
National Minimum Wage
- From 1 April 2021 the National Living Wage and the National Living Wage will align and apply to employees aged 23 and over
- Increases to £8.91 (from £8.72) from beginning April for employees aged 23 and over
- Proportionate increase in National Minimum Wage for younger age bands
Full 2020/21 rates are detailed here.
Universal Credit
- £20 per week increase in the level of Universal Credit has been extended until 30 September
