This is the (superb) update from Tony Crundell, an accountant, based in Shopshire, tel 01743 362141, www.crundellandco.co.uk:
Changes to Previously Announced Support
Sorry to bombard you with yet another update, but the support has been changed since our last newsletter earlier this week, on the whole the changes are positive
Furlough Scheme Extended
The coronavirus job retention scheme (furlough scheme) has now been extended to 31 March to help protect jobs and businesses over the winter, the scheme will work in a similar way to it has been, the key points are as follows:
- Furlough funding is for 80% of staff’s wages, up to a maximum of £2,500
- There is no funding towards employers National Insurance or pension contributions
- All employees who were on the payroll on 30 October and included on an RTI submission by 30 October will be eligible, even if they have not been furloughed before
- Employees who were on the payroll on 23 September (the day before the job support scheme was announced) and were made redundant or stopped working, can be reemployed and claimed for, provided there was an RTI submission that included their earning between 20 March – 23 September
- Employees can be flexibly furloughed and paid for hours worked as before
- Employers can top up wages above 80% as before, but there is no requirement to do this.
Job Retention Bonus
The job retention bonus for keeping furloughed staff employed will now not be given in February 2021 as was previously planned.
An alternative incentive will be announced in due course.
Job Support Scheme
The previously announced Job Support Scheme will now be delayed until further notice
Self Employed Grant extension
The self-employed grants will now also be at 80% of average profits, previously this was announced at 40% and then 55%. The rules of the scheme are as follows:
- There will be a further two taxable grants each covering a three-month period:
- The first to cover November 2020 to January 2021 will now be based on 80% of average monthly trading profits, capped at £7,500.
- Claims can be made two weeks earlier than planned from 30 November to allow claims before Christmas
- The details of the second grant, covering February to April 2021 are to be announced in due course.
Business Grants
Where businesses have been required by law to close, they will be able to apply for a support grant from their English local authority, based on the rateable value of their business premises:
| Rateable value of premises | Grant payable per two weeks |
| Up to £15,000 | £667 |
| £15,001 to £50,999 | £1000 |
| £51,000 or more | £1500 |
Different local business grants will be available in Wales, Scotland and Northern Ireland.
Your business may be eligible if it:
- occupies property on which it pays business rates
- is in a local lockdown area and has been required to close because of the formal publication of local restrictions guidance that resulted in a first full day of closure on or after 9 September. This funding is not retrospective
- has been required to close for at least 3 weeks because of the lockdown
- has been unable to provide its usual in-person customer service from its premises – if you are able to continue operating on takeaway only you should still be eligible
Businesses that are required to close but do not pay business rates may be eligible for funding at the discretion of the local council, as may businesses not required to close but which are severely impacted
Mortgage Holidays
Applications for mortgage holidays for up to six months were due to close on 31 October, but this facility will now remain open for borrowers who have been impacted by coronavirus. The FCA will announce details of who can qualify in the next few days
Other support
Businesses may also be eligible for:
- £1,500 for the kick starter scheme to employee 16-24-year olds for a six-month work placement
- £2,000 for under 25-year olds employed on an apprenticeship until the end of January, £1,500 if the apprentice is over 25
- Plans to extend existing government-backed loan schemes and the Future Fund to the end of January, and an ability to top-up Bounce Back Loans
Thanks Tony, a really great, succinct, update