FURLOUGHED employees and self-employed people impacted by the coronavirus crisis are being offered further support.

Changes to the Coronavirus Job Retention Scheme which have just been announced will enable businesses to bring furloughed employees back part time from July 1 - a month earlier than previously announced.

Chancellor Rishi Sunak has also confirmed that the Self-Employment Income Support Scheme (SEISS) will be extended.

Those eligible will be able to claim a second and final grant in August, worth 70 per cent of their average monthly trading profits. It will be paid in a single instalment covering three months’ worth of profits, and capped at £6,570.

With furloughed staff, firms will decide the hours and shift patterns to find the best approach - and will be responsible for paying staff wages while in work.

From August, the level of government grant provided through the job retention scheme will be tapered to reflect that people will be returning to work.

For June and July, the Government will continue to pay 80 per cent of people’s salaries.

In the following months, businesses will be asked to contribute a modest share. Individuals will continue to receive 80 per cent of their salary covering the time they are unable to work.

What do the changes mean for employers and furloughed staff?

• June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.

• August: The government will pay 80% of wages up to £2,500. Employers will pay ER NICs and pension contributions.

• September: The government will pay 70% of wages up to £2,190. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80%.

• October: The government will pay 60% of wages up to £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up the 80% total.

Claims from July onwards will be restricted to employers currently using the scheme and previously furloughed employees.

The scheme will close to new entrants on June 30, with the last three-week furloughs before that point commencing on June 10.

Chancellor Rishi Sunak said: “Our top priority has always been to support people, protect jobs and businesses through this crisis. The furlough and self-employment schemes have been a lifeline for millions of people and businesses.

“Now, as we begin to re-open our country and kickstart our economy, these schemes will adjust to ensure those who are able to work can do so, while remaining amongst the most generous in the world.”

What will employers have to do?

Employers will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.

Employees who believe they are not getting their 80% share can also report any concerns to the HMRC fraud hotline. HMRC will not hesitate to take action against those found to be abusing the scheme.

What else you should know about the SEISS grant

Individuals can continue to apply for the first SEISS grant until July 13.

Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid in a single instalment covering three months’ worth of profits, and capped at £7,500. Those eligible have the money paid into their bank account within six working days of completing a claim.

Applications for the second grant will open in August. Individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.

What is the eligibility criteria? Individuals will need to confirm their business has been adversely affected by coronavirus. An individual does not need to have claimed the first grant to receive the second: for example, they may only have been adversely affected by COVID-19 in this later phase. Further guidance will be published on Friday 12 June.

What you need to know about the CJRS

• Around 40% of employers have not made a claim for employer NICs costs or employer pension contributions and so will be unaffected by the change in August if their employee’s employment patterns do not change

• Many smaller employers have some or all of their employer NIC bills covered by the Employment Allowance so will not be significantly impacted.

• Around 25% of CJRS monthly claims are below the thresholds where employer NICs and automatic enrolment pension contributions are due, and so no employer contribution would be expected for these payments to furloughed employees in August.

• From 1 July, employers will be able to agree any working arrangements with previously furloughed employees.

• When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week, for grants to be calculated accurately across working patterns.