Lockdown 2 – What we know so far…
The details have been fairly limited so far and will be updated over the coming days, but this is what we know so far:
FURLOUGH SCHEME EXTENSION:
The Coronavirus Job Retention Scheme or ‘Furlough’, as it has come to be known, will be extended for another month on more favourable terms.
The replacement for Furlough, “The Job Support Scheme” which was due to start this week, will now start in early December after the Furlough scheme officially finishes.
The good news for small business owners (if there can be a silver lining) is that the government will again put in the full 80% of wage costs, up to a max of £2,500 per month, for furloughed employees, with employers only needing to cover the pension and NI contributions. You can also have your furloughed employees working part-time under the scheme.
You will be able to furlough anyone who has been processed on the payroll by 30th October 2020, and they are not required to have been furloughed before. As before, we will also be able to submit the furlough claims on your behalf.
SELF-EMPLOYMENT INCOME SUPPORT SCHEME (SEISS)
The 3rd SEISS grant available to the self-employed affected by COVID-19 had already been doubled from 20% to 40% of profits, however for the month of November it has been increased to the original 80%, in line with the furlough scheme.
This increases the total grant from 40% to 55% of trading profits for November to January and the maximum grant increases to £5,160.
SEISS Grants will also be paid faster than previously planned – with the claims window opening at the end of November rather than the middle of December.
There are also grants available for businesses, with rateable premises, who are forced to close due to the national restrictions.
• 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.
GOVERNMENT LOANS – CBILS & BOUNCE BACK
The application deadline for government support loans – including CBILS & Bounce back loans have been extended.
Originally 4th November, it had already been increased to the end of the month, however this has now been extended to the end of January. This extension also covers the larger, CBILS loans.
It has also been confirmed firms can ‘top up’ existing Bounce Back Loans should they need additional finance.