CORONAVIRUS – FURLOUGH SCHEME & OTHER SUPPORT EXTENDED AS SECOND NATIONAL LOCKDOWN CONFIRMED

 

Readers could be forgiven for believing they had travelled back to the future on Saturday night – a full national lockdown leaked to the press the night before, yet a press conference with the Prime Minister is continuously delayed, and then when the Premier does appear over three hours late, the seemingly inevitable is confirmed.

The same could be said for the furlough scheme, which returned in its prior format following the government’s announcements over the weekend.

The furlough scheme (or Job Retention Scheme, to give it its formal title) was due to be discontinued at midnight on 31 October, but will now be extended for a further calendar month (at least).

It also means that the furlough scheme’s replacement, the Job Support Scheme, will not commence as planned from 01 November but instead begin on 01 December (at the present time).

The scheme will return to the August 2002 format, in which employees will receive 80% of their regular salary per month (capped at £2,500) and the employer will contribute only any applicable Employer’s National Insurance and/ or Pension Contributions.

This will be open to employees who were on the employer’s payroll via a Real Time Information submission on or before 30 October 2020.
If you are unsure if your employees qualify, or how the scheme works more generally, please contact one of our team for assistance.

 

Other forms of support have also been extended in light of recent government announcements.

The self-employed income support grant will be doubled and those who have not yet used – to up a six month – mortgage holiday can do so now.

Businesses forced to close due to Covid-19 will also receive the following income via a business grant:

  • 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 week

 

If you would like further information on the support available to your business, please contact a member of our team.

Best wishes,

Alan

Alan Wright
Coronavirus Support Team
Switch Accountants