Government support update lockdown 2.0
The Government have issued further guidance on the support packages available during Lockdown 2.0.
The continually changing guidance has proved challenging, however, we are dedicated to supporting you. We have therefore summarised the details of the updated guidance for you…
✅ Extension to the Coronavirus Jobs Retention Scheme (CJRS)
- The CJRS has been extended to the end of March 2021 for all parts of the UK.
- For an employee to be eligible, they need to have been on a payroll run before 23:59 on 30 October 2020. Employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.
- Employees who were made redundant or stopped working after the Job Support Scheme announcement on 23 September 2020 can be re-employed and claimed for. The employee must have been on the payroll between 20 March 2020 and 23 September 2020.
- The scheme can be used for any amount of time worked and/or shift pattern, including furloughing an employee full-time.
- Employers will not have to contribute to wages for any hours not worked, however, they will have to cover NI and employer pension contributions for hours not worked. This will be reviewed in January 2021.
- Employers will have 14 days post month to get their claim in for furlough (e.g November 2020 claims need to be in by 14 December 2020). Claims can be made from 8am on Wednesday 11 November 2020. We are looking into the finer details of how this will work with payroll processing deadlines.
- HMRC are to publish the names of employers using the scheme from December 2020.
Full guidance will be published at www.gov.uk on Tuesday 10 November 2020.
✅ Job Retention Bonus (JRB)
- The JRB has been postponed and will be re-issued at the appropriate time (presumably after the CJRS has stopped – the end of March 2021 at the earliest).
- The third self-employed grant, covering the period November 2020 to January 2021 (for all parts of the UK) will cover 80% of three months’ average trading profits. This will be paid in one instalment and will be capped at £7,500.
- The self-employed can apply for this grant from 30 November 2020.
- A fourth grant will follow for the period February 2021 to April 2021. The details of this grant are yet to be confirmed.
- Businesses in England that have been forced to close will receive grants of up to £3,000 per month. This should cover monthly rent and is based on the business properties’ rateable value:-
- Local Authorities in England will receive funding to support local businesses over the coming months.
- Some local areas that entered ‘Tier 3’ have already received their funding.
- Businesses in the hospitality, leisure and accommodation sectors that suffered from reduced demand (due to local restrictions introduced between 1 August 2020 and 5 November 2020) will also receive help. Backdated grants at 70% of closed business grants, will be available. Grants will be up to a maximum of £2,100 per month for this period.
- Applications for discretionary Local Authority grants will be available this week. We recommend you contact your Local Authority now as limited funds are available for the discretionary grants.
- Businesses will be given two extra months to make loan applications for the following loan schemes:-
- Applications have been extended from 30 November 2020 to the end of January 2021.
- The Bounce Back Loan Scheme has been adjusted for businesses who have borrowed less than their maximum (e.g the lower of £50,000 or less than 25% of turnover) to top up their existing loan. This is due to some businesses taking out loans but not anticipating the disruption the pandemic would cause to their business.
- A 6-month mortgage payment holiday will continue to be available for homeowners in the UK without it being recorded on their credit file. For anyone who has already started a mortgage payment holiday, they will be able to top-up to the maximum of 6 months.
- A 6-month consumer credit holiday will continue to be available for individuals in the UK without it being recorded on their credit file. This includes personal loans and car finance. As with the mortgage payment holiday, anyone who has already started a consumer credit holiday, will be able to top-up to the maximum of 6 months.
- Hospitality, accommodation and attractions can benefit from a reduced VAT rate until the end of March 2021.
- Hospitality, accommodation and attractions can benefit from Business Rates Relief until the end of March 2021.
- Deferrals for tax, including:-
PS The information contained in this email was correct at the time it was originally sent and for general guidance only. If you would like further advice, specifically tailored to your personal circumstances, please call or email the team.