05.11.2020 – As the new national lockdown begins, a number of updates for businesses and employers have been announced.
These include:
- The extension of the CJRS furlough scheme through March 2021 (and the postponement of the successor Job Retention Scheme for now)
- Details of the third SEISS Grant, due to open for applications in week beginning November 30
- Updates on applying for Bounceback Loans and CBILS
- Applying for business grants during the lockdown
- And while this was announced a week or two ago, we update you on the Working From Home Tax Credit
CJRS Furlough Scheme
The furlough scheme carries on, and the rates of government support go back up to 80% of salary (capped at £2,500). The process will mirror August 2020 – 80% Government contribution to cover the salary costs of those on full-time or part-time furlough, but businesses must cover National Insurance and Pension Contributions for those on furlough.
There are some important updates to note:
- Employers can claim for employees on the payroll as at 30 October 2020, whether they have been furloughed before or not, provided that an RTI return has been made in respect of that employee between 20 March and 31 October
- Employees made redundant or who have left since 23 September can be re-hired and placed on furlough
Self Employed Income Support Scheme Grant 3
The third Self-Employment Income Support grant will be open for applications in the week beginning 30 November. It will cover the period from November 2020 to January 2021. A fourth grant will cover February to April 2021.
The third grant will be for 55% (instead of 40%) of average monthly trading profits between 2016-17 and 2018-19 (capped at £50,000), paid out in a single instalment, capped at £5,160 in total.
Please remember the eligibility criteria though:
- you must have been previously eligible for the first and second SEISS grant, whether you claimed them or not;
- intend to continue to trade and either:
- are currently actively trading but are impacted by reduced demand due to coronavirus
- were previously trading but are temporarily unable to do so due to coronavirus.
You must be actively trading as a sole trader. You should also be able to demonstrate (for example with prior period comparison) reduced demand in case of an HMRC review in the future.
Government-backed Loans (CBILs, Bounceback Loans)
Two updates:
- The deadline for applying for these business loans has been extended again to 31 January 2021
- If a business has applied for a smaller loan than the guidelines permit, it can apply to top up that loan
https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme
https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
Business Grants
Businesses in England required to close as a result of local or national restrictions will be eligible for the following grants:
- properties with a rateable value of £15,000 or under – a grant of £1,334 per month or £667 per two-week period;
- properties with a rateable value of between £15,000 and £51,000 – a grant of £2,000 per month or £1,000 per two-week period;
- properties with a rateable value of £51,000 or over – a grant of £3,000 per month or £1,500 per two-week period.
A note on the Working From Home Tax Credit
The Government is allowing a £6 per week tax credit for those working from home, and the Government has introduced a new process for claiming that credit through the adjustment of PAYE coding. All is explained below by Martin Lewis:
For those Self-Employed, you can claim that £6 per week when you prepare your tax return. In 2019-20, the claim was limited to £4 per week.