Following the Prime Minister’s announcement of a new lockdown for England guidance was issued over the weekend for the latest government support. Whilst further details are required here’s what we know so far:
Furlough Scheme Extended
The Coronavirus Job Retention Scheme (CJRS), also known as the furlough scheme, will now run until November 30th as a minimum. The previous scheme was originally scheduled to end on October 31st and be replaced with the Job Support Scheme (JSS). However, the JSS has now been postponed until the furlough scheme ends and further guidance on JSS will be issued in due course.
For an employee to be eligible for the extended furlough scheme they need to have been on a payroll run before 23:59 on 30 October 2020. The government will pay 80% of wages up to a cap of £2,500 for the hours not worked and employers will have to pay the pension and employers NI costs as before. The scheme will essentially work as CJRS did in August, with employers still being able to top of the shortfall if they so desire.
Further details, including how to claim this extended support through an updated claims service, will be provided shortly.
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 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.
Mortgage Holidays
Mortgage payment holidays were also due to end on October 31st but this has now also been extended until November 30th. Borrowers who have been impacted by coronavirus and have not yet had a mortgage payment holiday will be entitled to a six month holiday, and those that have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.
Self-Employed Grants
There doesn't appear to be any changes to the Self-Employed grants at present. At this stage therefore the 3rd grant remains at 40% of three months’ average trading profits, paid out in a single instalment, and capped at £3,750 in total.
If you have any questions or need guidance please let me know and I will be happy to help.
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