The government over the weekend has announced a new national lockdown. The Coronavirus Job Retention Scheme (CJRS also known as the Furlough scheme), will remain open until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. It has also been announced that mortgage holidays will no longer end on the 31st of October.
So where are we now? What are businesses entitled to? and how can you claim?
Coronavirus Job Retention Scheme:
The extended Job Retention Scheme will operate as the previous scheme did, with businesses being paid upfront to cover wages costs. There will be a short period when the legal terms of the scheme and the system will be updated and businesses will be paid in arrears for that period.
The CJRS is being extended until December. The level of the grant will mirror levels available under the CJRS in August, so the government will pay 80% of wages up to a cap of £2,500
As under the current CJRS, flexible furloughing will be allowed in addition to full-time furloughing.
Employers will pay employer NICs and pension contributions, and should continue to pay the employee for hours worked in the normal way.
As with the current CJRS, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.
The Government will confirm shortly when claims can first be made in respect of employee wage costs during November, but there will be no gap in eligibility for support between the previously announced end-date of CJRS and this extension.
Further details, including how to claim this extended support through an updated claims service, will be provided shortly.
The Job Support Scheme will be introduced following the end of the CJRS.
Alongside the extension to the CJRS there are further financial support measures:
Local Restrictions Support Grant:
Businesses required to close in England due to local or national restrictions will be eligible for the following:
For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.
Self-Employment Income Support Scheme:
There has been no specific update to the Self-Employment Income Support Scheme over the weekend. The original extension of six months to April 2021 still stands currently
The first grant will cover a three-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant covering 40% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £3,750 in total.
The online service for the next grant will be available from 14 December 2020
For a full list of government coronavirus support measures please see the list on the link below:
If you have any questions about what your business is eligible for please contact your Swindells’ partner who will be able to provide further assistance.
