Here’s a quick summary of what support is being offered to retail, hospitality and leisure businesses:
- The grant will be based on the rateable value of the property on the first full day of restrictions.
- If your business has a property with a rateable value of £15,000 or less, you may be eligible for a cash grant of £1,334 for each 28-day qualifying restrictions period.
- If your business has a property with a rateable value over £15,000 and less than £51,000, you may be eligible for a cash grant of £2,000 for each 28-day qualifying restrictions period.
- If your business has a property with a rateable value of £51,000 or above, you may be eligible for a cash grant of £3,000 for each 28-day qualifying restrictions period.
The grants are per property and administered by local authorities in England. If a client is based in Scotland, Wales or Northern Ireland you should check with the relevant authority to check the available support.
Central Government have also made additional funds available to local authorities to make discretionary payments to affected businesses in their area. You should check with the relevant authority to see what support might be available to your clients.
Below is a snippet of text provided by HMRC. Please speak to us before making a claim, as the eligibility has changed considerably from the first two grants.
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:
- all non-essential retail (clothing, electronics, betting, tobacco and vape shops, betting shops, tailors, car washes, vehicle showrooms and travel agents)
- indoor and outdoor leisure facilities (gyms, swimming pools, gold courses, dance studios, shooting ranges and stables/riding centres)
- entertainment venues (theatres, cinemas, bingo halls, casinos, zoos and animal attractions)
- 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.
A Job Retention Bonus of £1,000 will be paid where:
- An employee was previously furloughed.
- An eligible furlough claim was made for that employee.
- The employee remains continuously employed from 1st November 2020 to 31 January 2021.
- The employee is not serving notice
- The employee must have been paid at least £520 a month average for the 3 months preceding 5th February 2021
- Taxable income must have been paid in the 3 months preceding 5th February 2021
Claims will be made after 15th February 2021 and must be made by 31 March 2021
Employees claimed on the Job Support Scheme from 1st November 2020, will also be eligible.
Directors are also eligible for the bonus, if all the above are met.
Love Accountancy are planning to file these claims for our clients.
Further details are still to be released, but here’s what we know so far… [updates added on 26th October 2020 – following announced changes to the JSS]
New Support for job and employers (Job Support Scheme – JSS):
- Will run for 6 months
- Starts 1st November 2020
- Employees need to work for minimum of 20% of their time [Update: this was: at least a third of their normal hours (33%)].
- Of the hours not worked 5% will be covered by the employer (max £125), 61.67% by the Government (max £1,541.75) and 27% will be unpaid [Update: This was originally a third each (33%)].
There are slightly different rules for businesses who are forced to closed due to local lockdowns, so please contact us if you are one of these affected businesses.
[Update] Useful comparison of the furlough scheme compared to the new scheme: here
Key points – taken from: here
- Neither the employer or the employee need to have previously used the Coronavirus Job Retention Scheme !
- Large businesses will have to meet a financial assessment test, so the scheme is only available to those whose turnover is lower now than before experiencing difficulties from Covid-19. There will be no financial assessment test for small and medium enterprises (SMEs).
- Our [Government’s] expectation is that large employers using the Job Support Scheme will not be making capital distributions, such as dividend payments or share buybacks, whilst accessing the grant. Further details will be set out in guidance
- Employees must be on an employer’s PAYE payroll on or before 23 September 2020. This means a Real Time Information (RTI) submission notifying payment to that employee to HMRC must have been made on or before 23 September 2020.
- In order to support viable jobs, for the first three months of the scheme the employee must work at least 33% (update: now 20%) of their usual hours. After 3 months, the Government will consider whether to increase this minimum hours threshold.
- The grant will not cover Class 1 employer NICs or pension contributions, although these contributions will remain payable by the employer.
- The scheme will be open from 1 November 2020 to the end of April 2021. Employers will be able to make a claim online through Gov.uk from December 2020. They will be paid on a monthly basis.
- Employers must agree the new short-time working arrangements with their staff, make any changes to the employment contract by agreement, and notify the employee in writing. This agreement must be made available to HMRC on request.
- Further support for the Self Employed, details still to be announced.
There will be an extension of the Self-Employed Income Support Scheme (SEISS) which the Government had introduced to support self-employed individuals through the initial lockdown measures. The new grants will only be available to those self-employed who have been previously eligible and who continue to experience reduced demand due to COVID-19.
There will be two grants. The first will be for the period start November 2020 to end January 2021. This grant will be for 20% of average monthly trading profits and will be capped at £1,875. The second grant will be for the period start February 2021 to end April 2021. The value of this grant has not yet been determined by Government. We will provide you with more information as it becomes available.
Self-Assessment – Enhanced Time to Pay
Taxpayers with up to £30,000 in self-assessment tax liabilities due in January 2021 will be able to use HMRC’s self-service Time to Pay facility to secure a plan to pay their liability over 12-months.
- Any VAT deferred to March 2021 can now be paid over 11 instalments from this date. Updates to be posted when we know more.
Loan extensions for Bounce Back Loans and CBILS
If your business is still struggling then there are options to change your payment terms. We advise speaking to your lender if you are going to struggle to keep on top of the currently agreed loan schedule.
There are rumours of a new loan scheme starting Jan 2021.
How to: add a new (Read Only) user to Xero
Log into your Xero account. From the Dashboard go to the drop down menu and settings:
Updates following 29th May announcement(more…)
Bounce Back Loans (100% Government Backed)
New Government backed loan available now from your bank.
Stretching your cash reserves – top tips
Here we’ll quickly go through some top tips on managing your cash and making it last longer – especially important at a time like this.
Get paid quicker:
Sounds simple, but it’s not always that easy! (more…)
FAQs for the self employed
- First Published: 27th March
Last Updated: See below
As we get answers to questions (or have new advice), we’ll add them here and send out a WhatsApp broadcast, so we can help as many people as possible. Follow this link to join the broadcast list: http://www.loveaccountancy.co.uk/how-to-get-added-to-our-whatsapp-broadcasts/