Femi O. Ogunshakin
About Femi O. Ogunshakin
Posts by Femi O. Ogunshakin:
A quick update on the operation of the Coronavirus Job Retention Scheme (CJRS) previously opined on (see our blog xxx). HM Treasury has announced directions on the modification of the scheme effective i.e. the cut-off date for making a claim under the original scheme I s 31 July 2020.
As such, employers will be able to participate in the original scheme only if a claim had been made under the original scheme and the employee must have been on furlough for at least 3 weeks from a date on or before 10 June 2020.
For further information on the operation of the new scheme, qualification for participation and key dates to be aware of click here.
On 12 May, the Chancellor announced changes to the operation of the Coronavirus Job Retention Scheme (CJRS) and set out details on how the scheme will operate as people return to work. The good news is the scheme will continue in its current form until August. The not so good news: from September, the amount of the grant to employers will be tapered to reflect employees returning to work.
Initially, employers will be required to pay their employees’ National Insurance and pension contributions with the government paying 70% of wages up to a cap of £2,187.50 and employers will contribute 10% of wages to make up the 80% total up to a cap of £2,500. Then, from October, the government’s contribution will be reduced to 60% of wages up to a cap of £1,875 with employers required to pay the remaining 20%.
The revised scheme includes an announcement that new entrants to the scheme will need to have been furloughed for at least three weeks prior to 1 July i.e. those employees who on 30 June had been on furlough at least three weeks under the existing scheme. The CJRS is currently scheduled to close at the end of October.
Workers eligible under the self-employment income support scheme will be able to claim a second and final grant in August. The grant will be worth 70% of their average monthly trading profits paid in a single instalment covering three months’ worth of profits and capped at £6,570.
HMRC has announced new fuel rates for company cars. They apply to all journeys on or after 1 June 2020, until further notice. For one month from the date of the change, employers may use either the previous or new rates.
The new rates are;
Engine size Petrol LPG
1,400cc or less 10p 6p
1,400cc to 2,000cc 12p 8p
Over 2,000cc 17p 11p
Engine size Diesel
1,600cc or less 8p
1,600cc to 2,000cc 9p
Over 2,000cc 12pImage by Steve Buissinne from Pixabay
Interesting article on another one of the government’s initiative to ensure the cashflow of small businesses do not dry up #bouncebackloans. Confirms my personal suspicions on the future direction of this government initiative to help #smallbusiness cope with the anticipated damage the #coronavirus #lockdown will have on SMEs.
The shocking part of the article, if, as the article states, anecdotal evidence suggests, is the allegation that up to 50% of business owners interviewed are taking out loans knowing they’ve no intention of paying it back.