It seems that no sooner than I finish writing one blog it’s all change! Last weekend Boris announced a second national lockdown meaning many businesses have been forced to close their doors and their trade impacted. The Job Retention Scheme which was due to start in November has now been postponed and the Furlough Scheme extended. The Government also announced a raft of changes to many of the other support packages aimed at helping businesses’. Here’s our key summary of all the support available.
Job Retention Scheme
The scheme which was due to end has now been extended until the end of March 2021 to help support businesses over the difficult winter months and project jobs for workers.
It will work as it did previously in August with 80% of employees’ wages being paid for by Government up to a maximum of £2,500 for any hours not worked. Employers will need to pay National Insurance and Pension Contributions.
You can include any employees who were on the payroll at 30 October and they do not need to have been included in a furlough claim previously.
Flexible furlough still applies and will allow employees to return to work part time. Any hours worked for the business are to be at 100% of their normal wage.
Job Retention Bonus
The £1,000 Job Retention Bonus which was due to be paid to employers in February has been postponed.
Any businesses required to close in England will be eligible for a grant. These will be administered by local councils and the amount available is based on the properties rateable value.
- For properties with a rateable value up to £15,000 the grant will be £1,334 per month
- For properties with a rateable value between £15,000 - £51,000 the grant will be £2,000 per month
- For properties with a rateable value of £51,000 and over the grant will be £3,000
To qualify businesses must occupy a property on which it pays business rates. Even if the business is in receipt of Small Business Rate Relief they will still qualify. The business must be closed for a period of 3 weeks and unable to provide it usual in person service. Operating a take away service doesn’t affect eligibility.
For businesses who do not pay business rates there is a discretionary grant available of up to £1,500
Self-Employment Income Support Scheme
The grant which covers a 3 month period from November to January 2021 has been increased from 40% of average trading profits to 80% of average profits up to a maximum of £7,500
The online service to claim the grant will be available from 30 November.
There will also be fourth grant covering the period from February 2021 to April 2021. Further details of this will announced in due course.
Bounce Back Loans
The deadline for applications has been extended to 31 January 2021.
Any businesses who haven’t taken out the maximum amount (the lower of 25% of 2019 turnover or £50,000) are eligible to apply for top up loans.
Coronavirus Business Interruption Scheme (CBILS)
The scheme has also been extended until 31 January 2021
Bookkeeper Buddy is working hard to keep up you to date with all the changes and updates. If you need any help or have any questions about any of the support schemes please emails us email@example.com and we’ll do our best to support your business during these challenging times.
We regularly update our Facebook page with news and update so be sure to like our page to keep with all the latest information - https://www.facebook.com/BookkeeperBuddyDevon
Stay safe and best wishes.