Lock down 2 – what support is there?

By 2nd November 2020 Uncategorised No Comments

Further reading and source: https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced

Businesses required to close:

Restaurants, bars and pubs will be required to close but can continue to offer takeaway services. In addition, the following businesses will be required to close:

  1. all non-essential retail (clothing, electronics, betting, tobacco and vape shops, betting shops, tailors, car washes, vehicle showrooms and travel agents)
  2. indoor and outdoor leisure facilities (gyms, swimming pools, gold courses, dance studios, shooting ranges and stables/riding centres)
  3. entertainment venues (theatres, cinemas, bingo halls, casinos, zoos and animal attractions)
  4. personal care facilities (hair, beauty and nail salons, tattoo parlours, spas, massage parlours, non-medical acupuncture and tanning salons)

Non-essential businesses can continue to offer delivery and click and collect services.

Furlough – Job Retention Scheme (CJRS) extension:

UPDATES: The furlough scheme is now extended to 31st March 2021 – this will reviewed again in January 2021. 

  • This will continue for a further month (as currently announced).
  • The Job Support Scheme (JSS), which was starting in November is now postponed until the end of the CJRS.
  • Open to all employees on the payroll on 30th October 2020.
  • 80% of usual pay is covered (up to max of £2,500).
    • Employers can top this up to 100%.
    • Employers will pay NIC and pension contributions.
  • Flexible furloughing is allowed as well as full time furloughing.
  • This process should be managed properly (as it was in March 2020), so we do recommend you speak to your HR advisors on the legal process – you can use our employment law helpline if needed.

Points to note: 

  • The government expects that publicly funded organisations will not use the scheme, as has already been the case for CJRS, but partially publicly funded organisations may be eligible where their private revenues have been disrupted. All other eligibility requirements apply to these employers.
  • Employers can claim the grant for the hours their employees are not working, calculated by reference to their usual hours worked in a claim period. Such calculations will broadly follow the same methodology as currently under the CJRS.

Business Grants:

Available for businesses forced to close their doors:

  • 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 Grants:

UPDATE: 3rd Grant is now 80% of average trading profits (max of £7,500) for the period November – January 2021

No news on the 3rd SEIS grant – which is currently set to cover 40% of average profits for 3 months from 1st November 2020.

A 4th grant is also proposed to cover 3 months from 1st February 2021.

Personal Support:

Mortgage holidays can be extended by a further 6 months. Speak to your mortgage lender.

FAQS

When is the latest we can apply for the furlough scheme/add someone?

As far as we know, it would work as before and we’d need to know who’s furloughed when doing the payroll at the end of the month. The same process will have to be followed as before (i.e. notifying employees at the time you know you need to furlough them), especially if you furlough anyone who hasn’t already been been through the scheme.

 

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