Posted by Nick Day on 02 Nov 2020
New measures, including the extension of the Furlough scheme, have been announced to provide support for businesses and employees during the new lockdown.
The Coronavirus Job Retention Scheme (also known as the Furlough scheme) was due to end on 31 October but has now been extended until December. The scheme will make sure employees receive 80% of their salary for hours not worked, up to a maximum of £2,500. Employers will pay employer NIC’s and pension contributions for unworked hours, as well as making full payment for hours actually worked. Flexible furloughing will be covered by the scheme in addition to full furloughs.
To be eligible, employees must have been on an employer’s PAYE payroll by 23:59 on 30 October 2020.
Other measures include:
- An extension of the Self-Employment Income Support Scheme, offering grants for the periods from November 2020 to January 2021 and from February 2021 to April 2021. Grants will be available to anyone who was eligible for the earlier grants (even if they did not take those grants) and whose trade has been impacted by coronavirus. The grant for the first 3-month period will be equal to 80% of the average monthly trading profits, with payment for all 3 months made at the same time and capped at £3,750 in total. The amount of the grant available for the second 3-month period is still to be determined.
- Grants of up to £3,000 per month under the Local Restrictions Support Grant for business premises forced to close under the new lockdown. The grants will be as follows:
- £1,334 per month of £667 per week for properties with a rateable value of £15k or under;
- £2,000 per month, or £1,000 per two weeks for properties with a rateable value of between £15k-£51k;
- £3,000 per month, or £1,500 per two week for properties with a rateable value of £51k or over.
- £1.1bn is being given to Local Authorities to enable them to support businesses
- Covid-related mortgage holidays, due to end on 31 October, have been extended
- The Job Support Scheme, that was intended to replace the Furlough scheme, has now been postponed until the Furlough scheme ends.
If you need assistance in these changing times, Tax Innovations can help with Furlough scheme and Self-Employed Income Support Scheme claims, as well as payroll administration.
If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or firstname.lastname@example.org
- Property Partnership Incorporation and SDLT
- Companies House and HMRC Scam Alert
- Overseas Pension Changes 6 April 2017
- Tax Relief For Residential Mortgages
- Salary Sacrifice Update