03 Nov COVID 19 update: Support for the Self Employed and for Employers
Following the announcement of a further nationwide lockdown being enforced from Thursday 5 November 2020 to Wednesday 2 December 2020 the Government have announced changes to the financial support being offered to businesses during that period which we have outlined below – full details are still to be announced in some areas.
CORONAVIRUS JOB RETENTION SCHEME
The Coronavirus Job Retention Scheme (CJRS) – also known as the Furlough Scheme – which was due to close at the end of October will now remain open until December.
Businesses will retain the flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time. Neither the employer nor the employee needs to have previously used the CJRS.
The government will cover 80% of the employee’s current salary for hours not worked, up to a maximum of £2,500. Employers will be required to pay the employer National Insurance Contributions and pension contributions and should continue to pay employees for hours worked in the normal way. As with the previous scheme, employers are still able to top up employee wages above the scheme grant should they wish.
To be eligible, employees must have been on a RTI submission notifying HMRC that they have been paid by 30 October 2020.
SELF-EMPLOYMENT INCOME SUPPORT SCHEME (SEISS) GRANT EXTENSION
The support under the SEISS has been increased for November to 80% of trading profits.
As the first grant under the extended scheme covers the three months from November 2020 to January 2021 the total grant for that three month period has increased from 40% to 55% of trading profits and the maximum grant increases to £5,160.
The grants will also be paid faster than previously planned – with the claim window opening at the end of November rather than the middle of December.
Businesses that are required to close under the current national restrictions will be eligible for the following:
- For properties with a rateable value of £15,000 or under, grants will be £1,334 per month, or £667 per two weeks;
- For properties with a rateable value of between £15,000 and £51,000 grants will be £2,000 per month, or £1,000 per two weeks;
- For properties with a rateable value of £51,000 or more grants will be £3,000 per month or £1,500 per two weeks.
The Local Authority will distribute these grants.
BOUNCE BACK LOANS & CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME
Both schemes have been extended until 31 January 2021.
It has been confirmed that businesses that have borrowed less than the maximum sum available – up to 25% of their turnover to a maximum of £50,000, will be allowed to top up their loan amounts by going back to their banks from next week.
MORTGAGE PAYMENT HOLIDAYS
This scheme has now been extended. Borrowers who have not yet had a mortgage holiday can request a pause in their payments that lasts up to six months.
Those who have already had their payments deferred, can extend their mortgage holiday until they reach the six month limit.