HMRC Business Support During November Lockdown

Keep your business moving, with Robinsons. 

We can help you check your eligibility and get you on board the scheme that works for you, and your business needs. 

Plans for a new four-week lockdown across England – to try to keep coronavirus under control – has been announced by Prime Minister Boris Johnson.

With your business circumstances in mind we have highlighted the core elements of the latest support, grants and extensions, available to UK businesses.

Speak to the team today and let’s keep your business moving.

 

Coronavirus Job Retention Scheme (CJRS)

The government has announced that the Coronavirus Job Retention Scheme (CJRS) – also known as the Furlough scheme – will remain open until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the current scheme, which ended 31st October. This means the extended furlough scheme is more generous for employers than it was in October.

Who can claim

You can now only claim if you have previously furloughed your employee before 30 June 2020 and you have submitted a claim for this by 31 July 2020. This may differ if you have an employee returning from statutory parental leave.

Maximum number of employees you can claim for

The amount you can claim for in any single claim period starting from 1 July 2020 cannot exceed the maximum number of employees you claimed for under any claim ending by 30 June 2020.

For example, an employer had previously submitted 3 separate claims between 1 March 2020 and 30 June 2020, one for 30 employees, one for 20 employees and one for 50 employees. Then the maximum number of employees that employer could furlough in any single claim starting on or after 1 July 2020 would be 50.

In another example, an employer has 100 employees and previously submitted claims between 1 March 2020 and 30 June for all of these employees but not all at the same time. Instead of putting all 100 employees on furlough, this employer put 50 employees on furlough and rotated them every three weeks, with a maximum of 50 employees on furlough at any one time. The maximum number of employees that this employer could furlough in any single claim starting on or after 1 July 2020 would be 50, although all 100 employees are eligible for furlough.

For more information give Robinsons a call

 

Local Restrictions Support Grants

Business premises forced to close in England are to receive grants worth up to £3,000 per month under the Local Restrictions Support Grant. Also, £1.1bn is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly.

Your business may be eligible if it:

  • occupies property on which it pays business rates
  • is in a local lockdown area and has been required to close because of the formal publication of local restrictions guidance that resulted in a first full day of closure on or after 9 September. This funding is not retrospective
  • has been required to close for at least 3 weeks because of the lockdown
  • has been unable to provide its usual in-person customer service from its premises

For example this could include non-essential retail, personal services or cafes/restaurants that operate primarily as an in-person venue, but which have been forced to close those services and provide a takeaway-only service instead.

Eligible businesses will get one grant for each property liable for business rates within the lockdown zone.

Businesses that are required to close but do not pay business rates may be eligible for funding at the discretion of the local council, as may businesses not required to close but which are severely impacted.

What you will get

If your business is eligible and has a property with a rateable value of less than £51,000, you will receive a cash grant of £1,000 for each 3-week period your business is closed.

If your business is eligible and has a property with a rateable value of £51,000 or above, you will receive a cash grant of £1,500 for each 3-week period your business is closed.

The grant will be extended to cover each additional 3-week period, so if your business is closed for 6 weeks it will receive £2,000 or £3,000, depending on the rateable value of the property.

Grants will be based on the rateable value of the property on the first full day of local lockdown restrictions.

For more information give Robinsons a call

 

Mortgage Holidays

The scheme had been due to come to an end on Saturday.  Borrowers who have not yet had a mortgage holiday can request from their lender a pause in repayments, that can last up to six months.

Those who have had their payments deferred already, can extend their mortgage holiday until they reach the six-month limit.  During this period interest will still accrue on what borrowers owe.

The changes form part of a new package of financial support measures announced by the government as England heads into a second coronavirus lockdown on Thursday.

 

Self-Employment Income Support Grants

The Self-Employment Income Support Scheme Grant Extension provides support to the self-employed in the form of two grants, each available for three month periods covering November 2020 to January 2021 and February 2021 to April 2021.

1. Who can claim

To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:

  • have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
  • declare that they 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

2. What the Grant Extension covers

The extension will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.

The first grant will cover a three-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant covering 40% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £3,750 in total.

The second grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the second grant and set this in due course.

The grants are taxable income and also subject to National Insurance contributions.

3. How to claim

The online service for the next grant will be available from 14 December 2020. HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.

For more information give Robinsons a call

 

Here at Robinsons, we can help you check your eligibility and get you on board the scheme that works for you, and your business needs. 

Speak to the team today.  Let’s keep your business moving.

 

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