Read an update on the support offered to businesses, affected by COVID-19, following this weekend’s announcement of a further lockdown due to start on Thursday 5th November.
Prime Minister Boris Johnson, stated on Saturday 31st October that, subject to being passed in the House of Commons, there would be a second lockdown, initially for a four week period. To support businesses during this time, the government outlined a number of changes covering the Job Retention Scheme, Self Employed Income Support Scheme (SEISS), Mortgage Payment Holidays, Government Backed Loans and English Business Grants.
We are here to help
If you do have any questions about the available support, please do not hesitate to get in touch with the team at DRG Chartered Accountants. We would be pleased to hear from you and to talk through the available options for you and your business.
Job Retention Scheme (JRS) Extension
The Job Retention Scheme, which was due to come to an end on 31st October 2020, has now been extended until at least the beginning of December 2020. The Job Support Scheme, which was due to replace the Job Retention Scheme, has now been put on a back burner.
There will be no gap in eligibility for support between the previously announced end date of the Job Retention Scheme and this extension.
The ‘November’ Job Retention Scheme
The extended job retention scheme is as follows:-
- The Government will meet the full 80% of the employees’ wages for the hours not worked, up to a maximum cap of £2,500 per month
- The employer will still need to account for employer’s national insurance and pension costs
- Flexible furlough can still be agreed upon, between the employer and employee, where the business remains open
- The employer will meet the costs for any hours worked
- The employer can top up the 80% if they so wish.
Which employers are eligible?
- They must have a UK bank account and PAYE scheme
- The employer does not need to have submitted a Job Retention Scheme claim in the past
Which employees are eligible?
- They must have been on the employer’s PAYE Scheme as at 23.59 on 30th October 2020
The Real Time Information (RTI) submission, notifying the payment for that employee, must have been made to HMRC on or before 30th October 2020
How to make a Job Retention Scheme claim
The Government will announce when the November claims can be made.
- The methodology for calculating the amount of the claim will follow along similar lines to the present Job Retention Scheme structure
- Employers will need to report and claim for a minimum of 7 consecutive calendar days
- Employers will be required to report hours worked and the usual hours an employee would be expected to work in the claim period
Self Employed Income Support Scheme
The portal for the next round of Self Employed Income Support Scheme claims was due to open on 14th December 2020. This has now been moved forward to 30th November.
- The Government will increase the Self Employed Income Support Scheme percentage claim from 40% to 80% for the month of November
- For the three months covering the period November to January inclusive, the total grant claim will be 55% of the average trading profit up to a maximum of £5,160.
Please be aware that you have to make the claim yourselves. DRG Chartered Accountants cannot make the claim on your behalf.
Government Backed Loans
The application date for either the Coronavirus Business Interruption Loan Schemes, Bounce Back Loan Scheme and the Future Fund Scheme has been extended from 30th November 2020 to 31st January 2021.
If a business has not claimed the maximum under the Bounce Back Loan Scheme (i.e. less than 25% of their turnover, up to a max. borrowing of £50,000) then, from next week, they will be able to top up their Bounce Back Loan.
Mortgage Payment Holidays
- The Covid-19 mortgage payment holiday has now been extended beyond 31st October 2020
- Those who have yet to claim a mortgage holiday can now do so for up to 6 months, without affecting their credit rating
- Those who have already started a mortgage holiday will be able to extend this to 6 months, again without affecting their credit rating
English Business Grants
Properties required to close under national or local Covid-19 restrictions will be eligible for a grant based upon rateable value:-
- Properties with rateable value £15,000 or under are eligible for a grant of £1,334 per month or £667 per two weeks
- Properties with rateable value £15,000 to £51,000 are eligible for a grant of £2,000 per month or £1,000 per two weeks
- Properties with rateable value £51,001 or more are eligible for a grant of £3,000 per month or £1,500 per two weeks
If you would like to discuss the extension to the Job Retention Scheme (JRS), the Self Employed Income Support Scheme (SEISS) or other COVID-19 support offered by the government, please get in touch with the team at DRG Chartered Accountants.
For further information
Claim for wages through the coronavirus job retention scheme
Calculate how much you can claim using the coronavirus job retention scheme
Government increases support for self-employed across the UK
Furlough and redundancy
DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.