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.

Business Grants

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

VAT payments

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…