Coronavirus Support Update - 5 Nov
Our last update had barely left the press before it was superseded by events. We therefore give you the latest round up of Covid support.
CHECKLIST RESOURCE
The Government has provided an excellent checklist resource to check what support you could be eligible for using this online questionnaire.
Job retention scheme
The Job Retention Scheme which was due to end 31st Oct has now been extended to 31st March 2021.
The scheme is extended with significant changes:
Eligibility
Employers do not need to have used the JRS previously.
Employees do not need to have previously been put on JRS but must have been included on an RTI payroll at some time between 20th March and 30th Oct 2020.
Employees working under any contract type are eligible.
Employers must continue to pay up at least 80% of their wages* up to a cap of £2,500.
Employees made redundant after 23rd Sept can be re-employed and put on the scheme as long as the employee was included in RTI payroll between 20th March and 23rd Sept 2020.
*For Employees previously on JRS this will be calculated on the same basis that JRS was calculated prior to 1st Nov. For Employees new to JRS a new ‘Reference Pay’ is defined in Section 4.2 of this guidance.
Rules have been significantly relaxed on the flexibility that is allowed under the scheme:
Employees may be fully furloughed meaning they do no work for the Employer.
Employees may also be flexibly furloughed meaning they can be furloughed for some of their hours and work others.
Arrangements can be changed between the two options above.
What is paid
Employees are paid 80% of their wages for the time they are on furlough up to a maximum of £2,500.
Employers must pay all hours worked under flexible furlough and may pay the additional 20% at their discretion.
Employers must pay Employers NI and Pension Contributions on the salary paid.
The Government will give Employers the furlough pay via JRS, however Employers NI and Pension Contributions will not be reimbursed.
Full details of the extended JRS can be found here: Government Guidance.
Job Retention Bonus
The Job Retention Bonus has been withdrawn but a new retention initiative is promised at ‘an appropriate time’.
Self Employed Income Support scheme
Two further rounds of this grant have now been announced. One will cover the period 1st Nov to 31st Jan 2021. The second will cover the period 1st Feb to 30th Apr 2021.
GRANT PERIOD 1ST NOV TO 31ST JAN
Eligibility
Eligibility for the new rounds is the same as the first two rounds of the SEISS. Conditions are:
You must have traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year.
You must have traded in the tax year 2019 to 2020.
You must intend to continue to trade in the tax year 2020 to 2021.
You must have trading profits of no more than £50k.
Your trading profits must be more than your non-trading income.
You can continue to work.
What is paid
The Grant will pay 80% of average profits capped at £7,500. This is taxable income.
How to Claim
An online application process will be available from 30th Nov. The Government has promised payments will be made in ‘good time for Christmas’.
GRANT PERIOD 1ST FEB TO 30TH APR
The Government has promised new details on eligibility and amount of the grant in due course.
Business Grants
Businesses with premises that are required to close due to the new lock down will be eligible for further grants.
The amount paid will be between £667 and £1,500 for each two week period that the premises is closed. The amount will depend on the rateable value of the business property.
The money will be claimed via your Local Authority.
Bounce Back and Coronavirus business interuption Loans
The Bounce Back and CBILS schemes have been extended to 31st Jan 2021.
Kick Start SCheme
Whilst this is not a new announcement, it is not one we have covered in our bulletins.
The Government is offering to pay 100% of Minimum Wage for up to 25 hours per week including Employers NI and minimum pension contributions for 16 to 24 year olds on Universal Credit at risk of long term unemployment.
Mortgage PAyment holiday
A further extension of this scheme has also been promised.
