2nd Lockdown Furlough, SEISS and Grants update
EDIT: SINCE THIS WAS FIRST PUBLISHED, THE SEISS GRANT HAS NOW BEEN INCREASED TO 80%.
Following Saturday 31st October’s announcement we see some new grants, schemes and support in place.
Here’s your at a glance guide to what you need to know. These all relate to England only.
Furlough Scheme /Job Retention Scheme
This was due to end on the very day it was extended.
It was due to be replaced by the Job Support Scheme, but you don’t have to worry about that for now as it’s been shelved for a month. THE JOB SUPPORT SCHEME IS NOT HAPPENING THIS MONTH AFTER ALL.
The extended furlough scheme mirrors many elements of the scheme which were in place in August – so:
- You can have employees working flexible hours
- The government will pay 80% of the salary, up to a cap of £2,500 per month, for the hours not worked
- The employer has to pay the NI and minimum pension contribution
The big change is a good one: Eligibility
The employee needs to have been on your PAYE scheme by 30th October 2020. So new hires are covered.
Business Grants for businesses who are forced to close under the new restrictions
- 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.
Will be administered by the Local Authority as before. Details to be published soon.
Self employed Income Support Scheme / SEISS
As of today, the figure for SEISS remains at the 40% figure. The guidelines were revised 30th October so that looks like they are not helping the self employed to quite the same level as the employed. Which is odd. Perhaps they will change that? who knows?
EDIT. Yep. Predicable. It’s been increased, which is good, from 40% to 55%.
EDIT 2: Now it’s been increased to 80%
“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 55% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £5,160 in total.
The grant will be increased from the previously announced level of 40% of trading profits to 80% for November 2020. This therefore increases the total level of the grant from 40% to 55% of trading profits for 1 November 2020 to 31 January 2020.” Official line from HMRC here
The date for the next three month applications are set for 14th December.
Here’s the links to the government’s website about the scheme changes:
Business grants and employer/employee scheme
Self Employed Income Support Scheme
If you’ve any questions about any of this please get in touch. We will add more detail when it’s available, but for now, we’ve addressed above the questions everyone’s been asking us. There’s no change in the provision for company directors who pay themselves out of dividends. There’s no mention of whether you can rehire someone to furlough them. We imagine you’ll have to redo your contacts of employment AGAIN.
Happy to hear from clients and non clients.
David@theaccountancypractice.com
