Coronavirus Support Video
Chris Bailey, Director of SKS Bailey Group, has started his second series of Coronavirus support videos.
Click here to take you to the video.
In this episode Chris discusses the Coronavirus Job Retention Scheme extension, Job Retention Scheme bonus, Self Employed Income Support Scheme, Furlough, Bounce Back loans, the Job Support scheme and Capital Gains Tax.
Next month we will be starting monthly webinars with Chris to help support you during these challenging times and to provide you helpful insights on how you can improve your business.
Coronavirus Job retention Scheme (CJRS) Extension
On October 31st the UK Government announced a second national lockdown for England from November 5th until March 2021. The Prime Minister confirmed that the Job Support Scheme, which was due to launch on Sunday, has been postponed.
Instead, the government have decided to extend the Coronavirus Job Retention Scheme until March 2021. The CJRS was due to have ended after being scaled back to cover 60% of salaries during October.
Details confirmed by the Chancellor reveal that the scheme will retain the flexible element, but the level of government support will return to the levels given in August.
Furloughed employees will for November only (unless Lockdown is extended further) receive 80% of their current salary for hours not worked, up to a maximum of £2,500.
Employers will be able to furlough employees full time or part time, but to be eligible for the grant an employee must have been on an RTI submission made to HMRC before 23.59 on October 30th 2020.
Employers will be asked to cover Employer National Insurance and Pension contributions for hours not worked. They will continue to pay for hours worked as normal. Employers can top up furloughed staff’s salary to the previously contracted amount if that is what has been agreed with the employee.
All businesses using the CJRS are required to keep detailed records of workers’ pay and hours worked so that it will be easier to make the claims once the portal is available.
For latest details of the CJRS, click here.
The statement from the HM Treasury and the Chancellor also confirmed that the Job Support Scheme (JSS) which had been due to launch on November 1st, will not start until the CJRS has closed.
What happens when lockdown ends?
As announced by the Prime Minister, CJRS will end in March.
When England comes out of lockdown regions will be classed into tiers as before, based on their coronavirus risk level, and the Job Support Scheme (JSS) will kick in.
What other financial support can businesses get?
For a list of businesses whose premises are forced to close from November 5th 2020, click here.
The government will also give businesses:
That are legally required to close, a cash grant based on the rateable value of their business premises:
– 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.£1,000 for every furloughed employee kept on until at least the end of January 2021. Please refer to our fact sheet on the Job Retention Bonus Scheme.
– £1,500 for every out-of-work 16-24 year-old given a ”high quality” six-month work placement.
– £2,000 for every under-25 apprentice taken on until the end of January, or £1,500 for over-25s under the Government Plan for Jobs.
What about help for the self-employed?
The Treasury announced on November 2nd an enhancement to the support on offer for the self-employed during the month of November. Click here to read the latest government guidance on the Self Employed Income Support Scheme.
Mortgage Holidays
Mortgage payment holidays will no longer end on October 31st 2020. Borrowers who have been impacted by coronavirus and have not yet had a mortgage payment holiday will be entitled to 2 payment holidays of up to 6 months.
Those who have already started a mortgage payment holiday will be eligible for another payment holiday of 3 months and those who have resumed repayments after an initial payment holiday will be eligible for another payment holiday of up to 3 months
Borrowers will have until January 31st 2021 to request an initial payment holiday.
Borrowers will not be eligible for a payment holiday if they have already had 2 payment holidays of up to 6 months in total, but they may ask for tailored support from their lenders.
Contact Us
We are going through a fast changing situation and we endeavor to keep you up to date with relevant measures as announcements are made and details published.
If you require any help, support or guidance on any of the measures that Chris discussed in his video click here contact us now.