As we enter another lockdown, here's a breakdown of the additional support available for businesses affected by Covid-19.
Lockdown 2.0 – Support Available
has been a difficult year for everyone – from both a personal and business
perspective, it’s been a tough one. As we enter another lockdown, it’s time to
discuss additional support available for businesses affected by Covid-19.
The Job Retention Scheme is Back
on from the removal of the Job Retention Scheme and the introduction of the Job
Support Scheme, Rishi Sunak and the government have now decided to extend the
Furlough scheme due to the increase in Coronavirus cases and subsequent rules
in place across the country.
those businesses who have had to close or have been negatively impacted as a
result of Covid-19, here’s what you need to know:
The Coronavirus Job Retention Scheme is being extended until 31st March 2021.
Unlike in March 2020, the Furlough scheme this month allows employees to work for any amount of time or in any work pattern available, whilst still being able to claim the grant for those hours not worked. Employees can be on any type of employment contract.
Employers do not need to have used the Coronavirus Job Retention Scheme previously and can claim for employees who were on their PAYE payroll on 30th October 2020. However, a PAYE RTI must have been submitted by the employer between 20th March 2020 and 30th October 2020.
Employees on the scheme will receive 80% of their pay, up to a maximum of £2,500 a month.
During hours which are recorded as not worked, employees are not able to do any work which makes money for the organisation or provide any services to the organisation at all. However, they may partake in training, volunteering, or work for another employer, providing this is contractually viable.
Employers are entitled to top up employees pay if they wish to, although this is not a necessity. Whilst employees take annual leave they must be topped up to 100%.
Something to keep in mind is that in order to remain eligible
for the grant, it is vital that employers have confirmed with the employee IN
WRITING that they are being furloughed.
Ensure any agreements are consistent with all employment, equality and discrimination laws.
Keep hold of the written agreement for 5 years which also records the number of hours the employee will work and how long they will be furloughed.
doing this, you can be sure of your entitlements and also ensure your staff are
clear of the process too.
Re-claims can be made via the HMRC online portal. For November, this
will open on 11th November and claims must be made by 14th
December. Moving forward, each claim must be made by 14th of each claimable
month to receive payments.
Self-Employment Income Support Scheme Grant Extension
further business losses for self-employed workers across England, the
government has agreed to extend the Self-Employment Income Support Scheme with
two additional grants covering the periods from November 2020 to January 2021.
what you need to know:
To claim for this grant you must have been eligible for the previous rounds of the grants, whether or not you applied for them.
You must be able to prove that you intend to continue to trade, even if you are unable to do so at the present time.
Those who are successful in their application to receive the grant will receive a taxable grant of up to 80% of 3 months average monthly trading profits. This is capped at £7,500 in total.
The government has already agreed that there will be a fourth grant for self-employment from February to April 2021 – More details will be announced on this in due course.