Covid-19 – Further economic help announced for businesses and individuals

Over the weekend, Prime Minister Boris Johnson announced a second lockdown and with it, further economic help for those affected by Covid-19. In summary:

Help for businesses

Furlough extension

The Coronavirus Job Retention Scheme (CJRS or more commonly the Furlough scheme) is extended until December and will mirror amounts available in August. The Job Support Scheme which was due to begin on 1st November is postponed until the Furlough scheme ends.

Employees receive 80% of their current salary for hours not worked, capped at £2,500. Employers can recover this amount under the scheme. Employers must cover National Insurance and employer pension contributions.

Neither the employer nor the employee needs to have previously claimed under the CJRS to be eligible. Employees must be on an employer’s PAYE payroll by 23.59 on 30th October 2020.

Grants

Businesses forced to close are eligible for grants based on the following rateable property values:

  • £15k or less – £1,334 per month or £667 per 2 weeks
  • £15k-£51k – £2,000 per month or £1,000 per 2 weeks
  • Rateable value above £51k, £3,000 per month or £1,500 per 2 weeks

Help for the self employed

The Prime Minister announced a Grant Extension to the Self-Employed Income Support Scheme (SEISS) in the form of two further grants, covering the three month periods to January 2021 and April 2021.

Nov ‘20 to Jan ’21 – taxable grant covering 40% of average monthly trading profits, capped at £3,750

Feb ‘21 to April ’21 – amount to be confirmed following government review.

Grants can be claimed online from 14 December 2020; guidance on GOV.UK due soon.

Good housekeeping

HMRC is keenly investigating furlough claims and acting against fraud and negligence. We advise:

  • Keep accurate and clear records
  • Document communications with staff to ensure both sides understand and agree to the furlough scheme

Please email Nicola Hawkins or call 01527 558539 if you have queries about the recent changes.

Tags: , , ,

We are using cookies on our website

Please confirm, if you accept our tracking cookies. You can also decline the tracking, so you can continue to visit our website without any data sent to third party services.