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Financial help from the government to support crisis-hit companies

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Financial help from the government to support crisis-hit companies

Businesses and individuals across the UK are being provided with additional financial support as part of the government’s plan for the next phase of its Covid-19 response.

This includes an extension of the furlough scheme until December, extension of mortgage holidays and grants for businesses required to close.

The announcement came on Saturday evening in line with news of a second national lockdown in England from November 05 until December 01.

Job Retention Scheme (JRS) Extension

  • The JRS which was due to come to an end on 31st October 2020 has now been extended until at least the beginning of December 2020.
  • The Job Support Scheme, which was due to replace the JRS, has been put on a back burner.
  • There will be no gap in eligibility for support between the previously announced end date of the JRS and this extension.

What is the nature of the ‘November’ JRS?

  • The Government will meet the full 80% of the employees’ wages for the hours not worked, up to a maximum cap of £2,500 per month.
  • The employer will still need to account for employer’s national insurance and pension costs.
  • Flexible furlough can still be agreed upon, between the employer and employee, where the business remains open.
  • The employer will meet the costs for any hours worked.
  • The employer can top up the 80% if they so wish.

Eligible Employers?

  • They have a UK bank account and PAYE scheme.
  • The employer does not need to have put in a JRS claim in the past.

Eligible employees?

  • They must have been on the employer’s PAYE Scheme as at 23.59 on 30th October 2020.
  • The Real Time Information (RTI) submission notifying the payment for that employee must have been made to HMRC on or before 30th October 2020.

How to make the claim?

  • The Government will announce when the November claims can be made.
  • The methodology for calculating the amount of the claim will follow along similar lines to the present JRS structure.
  • Employers will need to report and claim for a minimum of 7 consecutive calendar days.
  • Employers will be required to report hours worked and the usual hours an employee would be expected to work in the claim period.

Mortgage Payment Holidays

  • The Covid-19 mortgage payment holiday has been extended beyond 31st October 2020.
  • Those who have yet to claim a mortgage holiday can now do so for up to 6 months, without affecting their credit rating.
  • Those who have already started a mortgage holiday will be able to extend this to 6 months, again without affecting their credit rating.

English Business Grants

  • Properties required to close under national or local Covid-19 restrictions will be eligible for a grant based upon rateable value.
  • Properties with rateable value £15,000 or under – grant of £1,334 per month or £667 per two weeks.
  • Properties with rateable value £15,000 to £51,000 – grant of £2,000 per month or £1,000 per two weeks.
  • Properties with rateable value £51,001 or more – grant of £3,000 per month or £1,500 per two weeks.

English Business Grants

  • Properties required to close under national or local Covid-19 restrictions will be eligible for a grant based upon rateable value.
  • Properties with rateable value £15,000 or under – grant of £1,334 per month or £667 per two weeks.
  • Properties with rateable value £15,000 to £51,000 – grant of £2,000 per month or £1,000 per two weeks.
  • Properties with rateable value £51,001 or more – grant of £3,000 per month or £1,500 per two weeks.

 

We Are Here to Help

If you would like to know more about the recent changes and how these new measure can be implemented, please contact us today. Our business growth experts are here to help you guide through these challenging times.

By |2020-11-03T13:18:12+00:00November 2nd, 2020|Covid-19 Support, News|0 Comments