Updated for Rishi announcements 5 November:
Here we go again… with the news of us entering Lockdown 2.0, what does it mean for you as business owners this time round?
If you’re feeling a little confused about all the recent changes and not sure where you stand, we discuss the support available for jobs here:
Scrap the Job Support Scheme for the moment, the Coronavirus Job Retention Scheme is back.
The Coronavirus Job Retention scheme, or Furlough scheme, will remain open until 31 March 2021. It has been confirmed that until 31 January 2021, that the government will provide a grant to cover 80% of non-worked hours, up to a cap of £2,500. This will be reviewed in January, and employers may be asked to contribute beyond the National Insurance and Pension costs they need to pay now, as have been required to do in September and October this year.
- Employers can claim for employees who were employed and on their PAYE payroll on 30 October 2020.
- For those employees that weren’t eligible for furlough before, then the 30 October is also the date that you use for basing usual pay.
- For those employees who were eligible for furlough then take the usual pay based on before 23 March – more guidance on this to follow on 10 November
- Remember its flexible, so you can have full time or part time basis furlough: fully or flexible
- You don’t have to have claimed under CJRS before
- Employees can be furloughed where they are unable to work because they:
- are shielding in line with public health guidance (or need to stay at home with someone who is shielding)
- have caring responsibilities resulting from coronavirus, including employees that need to look after children
- Employees that were employed and on the payroll on 23 September 2020 who were made redundant or stopped working for their employer afterwards can be re-employed and claimed for.
- As under the CJRS previously, during hours which employees are recorded as being on furlough, they cannot do any work for their employer that makes money or provides services for their employer or any organisation linked or associated with their employer. Training, volunteer, work for another employer.
- Pensions and NI will be met by the employer
- A signed agreement should be in place to confirm that employees are on furlough or flexible furlough
- Remember: for 1 November – 31 January the grant is for 80% of usual wages not worked capped at £2,500
Were you waiting for the £1,000 bonus to be paid out in February for those individuals that had been retained? Well, the Job Retention Bonus (JRB) will not be paid in February 2021 and a retention incentive will be deployed at the appropriate time. The purpose of the JRB was to encourage employers to keep people in work until the end of January. However, as the CJRS is now being extended to 31 March 2021, the policy intent of the JRB no longer applies.
Local Restrictions Support Grant
Grants for those who have been forced to close will receive grants up to £3,000 per month. The Local Authorities also have a pot of money to support businesses on the basis of £20 per head.
- For properties with a rateable value of £15k or under – £1,334 per month
- For properties with a rateable value of between £15k-51k – £2,000 per month
- For properties with a rateable value of £51k or over – £3,000 per month
The guidance is being revised and will be available here
Mortgage holidays will no longer end, giving everyone impacted by COVID a six month holiday with no recording of this on their credit file. The FCA provided further information here yesterday.
If you’re self-employed it’s important to note the Self Employed Income Support Scheme has been altered, the percentage of trading profits the Government will pay to support you has been upped to 80% (up from 45%, and then 55%) for the period 1 November – 31 January. For the period 1 February – 30 April 2021, this will be reviewed in due course. More information is here
Need to chat?
We’re here for you, please reach out with any questions you have or if you need to just chat things through.
If you want to drop Bev an email contact her here: Bev@vibrantaccountancy.co.uk
Fancy a chin wag give us a call: 01332 460184