Furlough Scheme Extension and new Business Grants
Following the announcement on Saturday of a new national lockdown, additional financial support is being provided by Government. This includes the extension for a month of the Coronavirus Job Retention Scheme (CJRS) with employees receiving 80% of their current salary for hours not worked and grants for business forced to close in England.
Coronavirus Job Retention Scheme – Extension 1 November 2020
Employers, small or large, charitable or non-profit with a UK bank account and a UK PAYE scheme can claim the grant. Neither the employer nor the employee needs to have previously used the CJRS.
To be eligible, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.
Government will pay 80% of wages up to a cap of £2,500 for the hours the employee does not work but employers will be asked to cover the employer National Insurance Contributions (NICs) and the employer pension contributions which, for the average claim, accounts for just 5% of total employment costs.
Flexible furloughing will be allowed in addition to full-time furloughing.
When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days and employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period.
Due to the extension, the new Job Support Scheme will now be delayed and will be introduced following the end of the CJRS.
Government have advised that further details, including how to claim this extended support through an updated claims service, will be provided shortly.
Businesses required to close in England due to local or national restrictions will be eligible for the following grants
- 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.
Businesses ordered to close due to the new national restrictions are listed in detail in this link https://www.gov.uk/guidance/new-national-restrictions-from-5-november#businesses-and-venues
The above information is a summary of the information provided by Government.
We will continue to assist and carry out the necessary calculations for payroll and also make claims for the CJRS on behalf of our clients.
However, if you have not asked us to assist with this before, or would like some additional information, please get in touch with either myself or James Andrews on 01132574506.