We have rounded up the key updates on the various schemes available to minimise the impact of the latest lockdown measures:
Extension of the furlough scheme
Although the Coronavirus Job Retention Scheme (CJRS) was due to end at the end of October, in light of the measures, which will see all non-essential business close, the scheme has been extended. The funding has reverted back to August's caps, meaning that the Government will pay 80% of an employee's salary, up to £2,500 a month. The employer will be responsible for covering the cost of the National Insurance payments, as well as the pension contributions. Flexible furlough will also be allowed, to allow some employees to return part-time.
To be eligible for a claim, the furloughed employee must have been on an employer's payroll by 23:59 on the 30 October 2020. The employer or employee does not need to have been previously enrolled to be eligible for the scheme. The previously announced JSS will not come into effect until the furlough scheme officially ends.
Local Authority Grants
For businesses who are not able to open under the new restriction guidelines, a new Local Authority Grant has been announced. The level of grant you would eligible for is dependent on the rateable value of the business property:
- 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
Each Local Authority will also have a discretionary grant scheme, which will come with its own eligibility criteria, but could include businesses that are not rateable but have some fixed property costs (such as shared offices) or businesses who have not been ordered to close but will be impacted by the restrictions (such as businesses in the wedding industry).
Emergency Business Support Loans
UK businesses will now have until the end of January, to apply for emergency business support loans, such as the Coronavirus Business Interruption Loan Scheme or the Bounce Back Loan, rather than the initial deadline of the 30 November.
If you need support or advice on the best scheme for your business, our team are always on hand to help.