Here we are, Lockdown Take Two, and regardless of our thoughts about it, political or philosophical, we just have to do as we are told. So batten down the hatches and lets take a look at what support is available to you.
Furlough has been extended by the government so that they can fund up to 80% of employee wages for the hours that employees cannot work due to Coronavirus, with a cap of £2,500 per month from 1st November.
Employers will still need to pay all of the Employers National Insurance Contributions and all of the Employer Pension Contribution, you can choose whether you will be topping up the employee furloughed hours, but you are not required to.
So, furlough part-time or furlough full-time, don’t forget you are responsible to pay for the hours worked, you need to keep a log of the payroll entries and calculations, and don’t forget to make sure you have an agreement with your employees!
Read more about the furlough scheme here but please note, further information has been issued by HMRC which states the following:
How to check if your employees are eligible:
- Employers can claim for employees who were on their PAYE payroll on 30 October 2020. You or your clients must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March and 30 October 2020, notifying a payment of earnings for that employee.
- If employees were on an employers’ payroll on 23 September 2020 (i.e. notified to HMRC on an RTI submission on or before 23 September) and were made redundant or stopped working for them afterwards, they can also qualify for the scheme if they re-employ them.
- Neither the employer nor the employee needs to have previously used the CJRS. Further details on eligibility will be provided in the next few days.
Bounce back with a loan
The deadline for applications to the Bounce Back Loans has been extended to 31st January 2021, so if you need support then check out the criteria before you apply for a 6 year loan, with no repayments due within the first 12 months. Apply for your loan here
Businesses required to close in England due to local or national restrictions will be eligible for the following:
- For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
- For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
- For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.
Self-Employment income support scheme
Did you previously qualify for the scheme? Are your intentions to continue trading? Is your business being impacted by reduced demand or temporary closure? If you can answer yes, then you should see some further support from the government. The scheme has been increased from 40% average trading profits to 55% and brought forward from 14th December to 30th November.
Grant one covers November to January and will be 55% of your average monthly trading profits, capped at a total of £5,160. The second grant will cover you for February to April, the amount and dates have not been set
Please remember that these grants are still subject to Tax and National Insurance.