Lockdown part 2 – What support is available

covid19 business support schemes

What support is available?

Saturday wasn’t the Halloween surprise we wanted, however following Boris Johnsons announcement on Saturday night a number of new support packages have been released.  The full detail is not available at the moment but this blog post summarises what we know so far…

The Job Retention Scheme – Furlough

You will have heard “furlough” mentioned in Boris Johnson’s speech on Saturday night and the extension of the scheme to the end of November.

HMRC have issued guidance on the extension however as throughout the pandemic the full detail is yet to be released, and until we receive this we can not give full advice on your options.

Here are the key points that we do know:

  • The Job Retention Scheme has been extended for a month to 30th November 2020
  • For an employee to be eligible they must have been on a payroll before 30th October 2020
  • Employers will have to pay pension and NI costs
  • The government will pay up to 80% of wages capped at £2,500

Mortgage Holidays

These have been extended and borrowers that have been affected by coronavirus can take up to a six months repayment holiday.

Business Grants

Businesses required to close in England due to local or national restrictions will be eligible for the following:

  • For properties with a rateable value of £15k or under, grants will be available up to £1,334 per month or £667 per two weeks;
  • For properties with a rateable value of between £15k and £51k, grants will be available up to £2,000 per month or £1,000 per two weeks;
  • For properties with a rateable value of £51k or over, grants will be available up to £3,000 per month or £1,500 per two weeks.

These will be claimed through your local council as previously.

Self-Employment Grant Extension

The third self-employment grant will now be paid at 55% of average profits, paid in a single instalment covering three months capped at £5,160 in total.  The increase is to reflect a payment of 80% for November.

The online portal to make the claim will be open from 30th November.

There will be a final grant payable, however the rate is to be determined by the government in due course.

We will send an update as soon as we know anymore.

If you have any questions please let us know and we will be happy to help, contact us today.

 

Carrie Stokes Chartered Accountant

Carrie Stokes Chartered Accountant

I work with directors of limited companies in Shropshire, Staffordshire and the West Midlands giving them a clear and up to date financial picture of their business that they understand. Looking at the numbers, what they mean and how they can be improved to grow their business.

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