Covid 19 – Additional Financial Support Measures – November 2020
The UK has been placed in a further lockdown from Thursday 5th November to Monday 2nd December – All non-essential shops, including pubs and restaurants must close but can operate take-away / delivery services.
Additional Financial Support Measures
Job Retention Scheme / Furlough Scheme (CJRS)
- To remain open until End of March 2020.
- All employers with a UK bank account / UK PAYE schemes can claim. Neither the employer nor the employee needs to have previously used the CJRS – However, the employee/s must be on an employer’s PAYE payroll as at 30th October 2020.
- Employees will receive 80% of their current salary for hours not worked, up to a maximum of £2,500.
- The grant must be paid to the employee in full. The employer is responsible for paying for any hours that an employee works.
- Employers need to cover the National Insurance / Pensions costs in full.
- Flexibility to to bring furloughed employees back to work on a part time basis or furlough full time.
- Employers are still able to top up employee wages if they wish.
- The extended CJRS will operate as the previous scheme, with businesses being able to claim shortly before, during or after running payroll.
- Claims can be made from next week (W/C 9th Nov – Exact date to be confirmed) and as previously, will be paid within 6 working days.
- The Job Support Scheme (JSS) due to commence from 1st November, has been postponed until the furlough scheme ends.
- 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.
- Grants will be paid out by local authorities – Please contact them directly / check their website for further information on how and when to claim.
- Backdated cash grants for businesses in Tier 2/3 areas: Businesses in hospitality, leisure and accommodation sectors that have been suffering from reduced demand for a while will receive backdated grants at 70% of the value of closed grants up to a maximum of £2,100 per four weeks for this period.
- Timing – Allocations to be made to local authorities this week, funding to follow next week (W/C 9th November)
Bounce Back Loans (BBL) / Coronavirus Business Interruption Loans (CBILS)
- Applications extended to end of January 2020, so there is still time to make an application if you wish.
- BBL – The amount you can borrow is between £2,000 and up to 25% of turnover
- BBL Scheme rules have been adjusted to allow businesses who have borrowed less than their maximum (i.e. less than 25% of their turnover) to top-up their existing loan. Businesses will be able to take-up this option from next week; they can make use of this option once.
- Applications should still be made through your current bank
- HMRC have not announced any further extension in regards to deferment of VAT payments,
Self employed Income Support
- A further self-employed Grant has been announced – Covering 1st November 2020 to 31 January 2021 and from 1st February 2021 to 30 April 2021.
- Applicants must have been previously eligible for the Self-Employed Income Support Scheme first and second grants (although they do not have to have claimed the previous grants).
- To qualify, you must declare you intend to continue to trade and are either actively trading, but the business has been severely impacted by Covid-19 or were previously trading but are temporarily unable to do so due to Covid-19,
- The Grant covering November – January will be a one off payment of 80% of average monthly trading profits for November 2020 – January 2021 . The maximum grant is capped at £7500.00
- This can be claimed from 30th November 2020,
- The Grant covering February – April and the percentage / capped amount has not yet been announced by HMRC.
We’re here to help throughout this challenging time – Become a Fairmile client and benefit from our unlimited free advice and free Job Retention Scheme administration.
Call us today on 01235-887430 or contact us for immediate assistance – We can get through this if we all help each other…