After a few weeks where it seemed things were returning to some kind of normality and businesses starting to get back on track, this week the Prime Minister announced further restrictions as cases of Covid begin to rise again. This has raised fears of another lockdown and will no doubt have a negative impact on the economy.
The last few weeks has seen no major announcements regarding financial support but this is going to change this week to counter the increased restrictions. So it seems a good opportunity to summarise on what’s going on. The highlights are:
Rishi Sunak to make announcement at 12:30pm today
The Chancellor is expected to make an announcement today detailing further measures that will be taken to support business. He has already announced the Autumn Budget will be cancelled in favour of a plan for saving jobs over the coming months.
I understand that the furlough scheme is still set to end on the 31 October, but will be replaced by a wage subsidy system whereby the Government makes up a short fall of pay to employees whose hours have been reduced. I don’t believe this is going to be industry specific, but inevitably the nature of support will most likely apply to those industries hardest hit by Covid.
The extension of business loan schemes are also set to be unveiled.
Once the announcement has been made I will be in touch to provide details of how it will effect your business. As always, feel free to get in touch if you have any queries or concerns.
Job Retention Scheme to close on 31st October
There has been no changes to the plan to close the Job Retention Scheme on the 31st October.
To recap, from 1 September, the government will pay 70% of wages up to a maximum cap of £2,187.50 for the hours the employee is on furlough. Employers will top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500.
For October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500 for time they are furloughed.
We will continue to process your furlough claims if we are responsible for your payroll. If we not and you need assistance, please get in touch.
Self Employment Income Support Scheme
Applications for the first grant open to sole traders and partnerships closed on 13 July 2020.
The second and final taxable grant is worth 70% of your average monthly trading profits, paid out in a single installment covering 3 months’ worth of profits, and capped at £6,570 in total.
Applications for the second and final grant are now open. If you’re eligible and your business has been adversely affected on or after 14 July 2020, you must make your claim for the second grant on or before 19 October 2020.
If you need assistance on checking whether or not your eligible and making the claim please get in touch as once the deadline passes you won’t be able to access this non repayable grant.
Other grants offered throughout the lockdown
Applications for the non domestic rates grant or the Welsh Government’s Resilience Grant have closed some time ago so these are no longer available. If you made a claim and it has still not been dealt with please get in touch so we can assist with getting it moving for you.
Our availability
We are available to assist on any of these issues that are effecting your business. Our offices are still open 9-5 and are Covid safe. Most of our staff are working from home in line with the guidance but there will always be someone at the offices to take receipt of your records or someone at the end of the phone.