Latest government support update 11 November 2020

The latest measures mean that all non-essential businesses have had to adapt or even close when they were only just climbing back onto their feet.  Read below for the facts on the support you may be eligible for.

covid financial support nov

Coronavirus Job Retention Scheme (CJRS)

  • The CJRS has been extended to the end of March 2021 for all parts of the UK.
  • For an employee to be eligible, they need to have been on a payroll run before 23:59 on 30 October 2020.  Employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.
  • Employees who were made redundant or stopped working after the Job Support Scheme announcement on 23 September 2020 can be re-employed and claimed for.  The employee must have been on the payroll between 20 March 2020 and 23 September 2020.
  • The scheme can be used for any amount of time worked and/or shift pattern, including furloughing an employee full-time.
  • Employers will not have to contribute to wages for any hours not worked, however, they will have to cover NI and employer pension contributions for hours not worked.  This will be reviewed in January 2021.
  • Employers will have 14 days post month to get their claim in for furlough (e.g November 2020 claims need to be in by 14 December 2020).  Claims can be made from 8am on Wednesday 11 November 2020.  We are looking into the finer details of how this will work with payroll processing deadlines.
  • HMRC are to publish the names of employers using the scheme from December 2020.
covid furlogh scheme update

Job Retention Bonus (JRB)

The JRB (Job Retention Bonus) has been postponed and will be re-issued at the appropriate time (presumably after the CJRS has stopped – the end of March 2021 at the earliest).

Self-Employment Income Support Scheme (SEISS)

  • The third self-employed grant, covering the period November 2020 to January 2021 (for all parts of the UK) will cover 80% of three months’ average trading profits.  This will be paid in one instalment and will be capped at £7,500.
  • The self-employed can apply for this grant from 30 November 2020.
  • A fourth grant will follow for the period from February 2021 to April 2021.  The details of this grant are yet to be confirmed.
  • The third self-employed grant, covering the period November 2020 to January 2021 (for all parts of the UK) will cover 80% of three months’ average trading profits.  This will be paid in one instalment and will be capped at £7,500.
  • The self-employed can apply for this grant from 30 November 2020.
  • A fourth grant will follow for the period from February 2021 to April 2021.  The details of this grant are yet to be confirmed.

For more information please see the Government Self Employment Income Support Scheme Grant Extension publication.

government grants furlough scheme

Financial Support for Local Businesses in England

  • Businesses in England that have been forced to close will receive grants of up to £3,000 per month.  This should cover monthly rent and is based on the business properties’ rateable value:-
➡️ For properties with a rateable value of £15k or under, grants will be available of up to £1,334 per month or £667 per two weeks
 
➡️ For properties with a rateable value of between £15k and £51k, grants will be available of up to £2,000 per month or £1,000 per two weeks
 
➡️ For properties with a rateable value of £51k or over, grants will be available of up to £3,000 per month or £1,500 per two weeks
 
  • Local Authorities in England will receive funding to support local businesses over the coming months.
  • Some local areas that entered ‘Tier 3’ have already received their funding.
  • Businesses in the hospitality, leisure and accommodation sectors that suffered from reduced demand (due to local restrictions introduced between 1 August 2020 and 5 November 2020) will also receive help.  Backdated grants at 70% of closed business grants, will be available.  Grants will be up to a maximum of £2,100 per month for this period.
  • Applications for discretionary Local Authority grants will be available this week.  We recommend you contact your Local Authority now as limited funds are available for the discretionary grants

Loan Schemes

  • Businesses will be given two extra months to make loan applications for the following loan schemes:-
➡️ Bounce Back Loan Scheme
➡️ Coronavirus Business Interruption Loan Scheme
➡️ Future Fund
➡️ Coronavirus Large Business Interruption Loan Scheme
  • Applications have been extended from 30 November 2020 to the end of January 2021.
  • The Bounce Back Loan Scheme has been adjusted for businesses who have borrowed less than their maximum (e.g the lower of £50,000 or less than 25% of turnover) to top up their existing loan.  This is due to some businesses taking out loans but not anticipating the disruption the pandemic would cause to their business.
book keeper

Mortgage and Credit Payments

  • A 6-month mortgage payment holiday will continue to be available for homeowners in the UK without it being recorded on their credit file.  For anyone who has already started a mortgage payment holiday, they will be able to top-up to a maximum of 6 months.
  • A 6-month consumer credit holiday will continue to be available for individuals in the UK without it being recorded on their credit file.  This includes personal loans and car finance.  As with the mortgage payment holiday, anyone who has already started a consumer credit holiday will be able to top-up to the maximum of 6 months.

Existing Business Support which has NOT Changed

  • Hospitality, accommodation and attractions can benefit from a reduced VAT rate until the end of March 2021.
  • Hospitality, accommodation and attractions can benefit from Business Rates Relief until the end of March 2021.
  • Deferrals for tax, including:-
➡️ Corporation Tax
➡️ VAT
➡️ Self-Assessment Income Tax

🔀 If you know someone who might benefit from the information, please feel free to share it.

☎️ As always, please call the Codex team on 01453 333 923

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