Government announces extension of coronavirus job retention and self-employment support schemes until end of September 2021

Budget 2021 also confirms eligibility for self-employment support will be extended to include people who have filed a tax return for the 2019/2020 tax year

The government has announced that the Coronavirus Job Retention Scheme (CJRS) and Self-Employment Income Support Scheme (SEISS) will be extended until the end of September 2021.

In today's Budget 2021, the government sets out how it is extending its economic support during the Covid-19 outbreak, saying its plans -

'... reflect the cautious easing of social distancing rules and the reopening of the economy in the government’s roadmap. Support in the Budget reflects the easing of restrictions to enable the private sector to bounce back as quickly as possible.'

In relation to support for individuals and businesses provided through the CJRS, the government says it will extend provision beyond its current end date of 30 April 2021, confirming at paragraph 2.14 of the Budget 2021 document that -

• the scheme will be extended until the end of September 2021 and will continue to provide 80 per cent of furloughed employees’ wages for hours not worked up to the £2,500 monthly limit; and
• employers will be required to start contributing towards the 80 per cent government contribution with a 10 per cent payment towards furloughed staff wages from 1 July 2021, rising to 20 per cent in August and September 2021.

In relation to the SEISS, the government confirms details of the previously announced fourth tranche of grants, which will notionally cover the three-month period from 1 February 2021 to 30 April 2021, and a new fifth grant covering May to September 2021.

In addition, the Budget documents, and a policy paper also published today, provide details of the eligibility and payment rules for the two new SEISS grants that include that -

• people who have filed a tax return for the 2019/2020 year will qualify for the fourth grant - potentially opening up eligibility for more than 600,000 self-employed people who have been excluded from the three earlier SEISS grants (paragraph 2.15 of Budget 2021 document);
• the amount of the fourth grant will remain at 80 per cent of three months' average monthly trading profits, capped at £7,500 (paragraph 2.15);
• the fifth grant will require a 'Financial Impact Declaration' that determines whether applicants are eligible for either a higher or lower grant amount based on how much their turnover has reduced in the year April 2020 to April 2021 (page 6 of Policy Costings document);
• the higher fifth grant amount will be calculated at 80 per cent of average trading profits if turnover has reduced by more than 30 per cent, while the lower rate will be paid at 30 per cent if turnover has reduced by less than 30 per cent (paragraph 2.16 of Budget 2021 document).

For more information, see Budget 2021: documents from gov.uk