Here’s the latest information, following the weekend’s announcements as we prepare for our second lockdown. We want to ensure you, that you are not alone and as always we are here to support you.
As part of the announcement, the Prime minster stated a number of business support packages have been made available including;
Job Retention Scheme
The Coronavirus Job Retention Scheme has been extended for a month with employees receiving 80% of their current salary for hours not worked and further economic support announced.
Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the current scheme, which ended in October. This means the extended furlough scheme is more generous for employers than it was in October. This means the extended furlough scheme will give support to the levels given in August.
Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time, and will only be asked to cover National Insurance and employer pension contributions which, for the average claim, accounts for just 5% of total employment costs.
The Job Support Scheme, which was scheduled to come in on Sunday 1st November, has been postponed until the furlough scheme ends.
All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the CJRS.
Employees are now eligible providing they were on the employer’s PAYE payroll which has been processed by 30th October 2020.
What support is being provided and employer costs:
- For hours not worked by the employee, the government will pay 80% of wages up to a cap of £2,500. The grant must be paid to the employee in full.
- Employers will pay employer NICs and pension contributions and should continue to pay the employee for hours worked in the normal way.
- As with the current CJRS, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.
- The Government will confirm shortly when claims can first be made in respect of employee wage costs during November, however, there will be no gap in eligibility for support between the previously announced end-date of CJRS and this extension.
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.
We are here to support you
We will ensure we keep you up to date as further announcements are made. If you need any support or wish to ask us a question, please call a member of our expert team on 0330 22 33 660, we are here to support you.