Coronavirus Update – Increased Business Support 23/10/2020
|Job Support Scheme
The Government has announced improved terms of the Job Support Scheme, commencing on 1st November 2020, for businesses affected by the pandemic, but which are not subject to restrictions that legally require them to close. The original terms were detailed in our Update dated 24th September 2020, and where relevant are shown in brackets to compare to these revised ones.
We draw your attention to the following changes in the Scheme, now known as Job Support Scheme Open:
-Employees have to work a minimum of 20% ( 33%) of their minimum hours.
-For hours not worked, the grant will be 61.67% ( 1/3rd) of usual wages, capped at £1,541.75 ( £697.92) per month, and a further 4% ( 1/3rd) to be paid by the employer capped at £125 per month, although the employer may top up wages beyond the 5% at its own discretion.
-In addition, Employer National Insurance and pension contributions remain payable by the employer.
-Eligibility for Large employers, defined as those with 250 employees or more, will be dependent on meeting a financial impact test evidencing that turnover has remained level or fallen.
-There will be no financial impact test for employers with less than 250 employees or for charities. Eligibility of employees is detailed in the Treasury announcement.
-For businesses legally required to close due to restrictions, the terms of the Scheme, now known as Job Support Scheme Closed, are detailed in our Update of 13th October 2020.
Self Employment Income Support Grant
The terms of the above, detailed in our Update of 24th September, have likewise been improved with the grant for the 3 months November to January 2021 increased to 40% ( 20%) of average monthly profits up to £3,750 ( £1,875). The level of grant for the 3 months February to April will be determined in due course.
Local Restrictions Support Grant Tier 2
Our Update of 13th October 2020 detailed grants that will be available for closed businesses in Tier 3 areas. The Government is providing additional funding to local authorities to enable support in Tier 2 areas.
-The funding is to enable local authorities to support businesses, whilst not legally closed, are severely impacted by the restrictions, primarily in the hospitality, hotel and leisure sectors.
-Eligibility, allocation and administration of the grants will be under the control of the local authorities, but the Government funding has been calculated to be the equivalent of grants ranging between £934 and £2,100 per month depending on premises rateable value, in the above 3 sectors.
-In addition there will be a 5% top up funding to facilitate support affected businesses not in the business rates system.
-Government funding is calculated to facilitate grants backdated for those area that have been under local restrictions prior to the introduction of the tiering system.
For the full Treasury announcement Click here
For HMRC Policy Document on the Job Support Scheme Click here