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Extra Support for Business if Required to Close

What are changes announced?

  • The Chancellor has announced
    • an extension to the new Job Support Scheme for businesses required to close due to COVID restrictions.
    • Cash grants for businesses required to close in local lockdowns.

 

When does the Job Support Scheme start?

  • It starts on 1 November 2020 and is available for 6 months.
  • Prior to that date, the employer is expected to utilise existing support arrangements such as the Job Retention Scheme which comes to an end on 31st October 2020.

 

What is the eligibility criteria?

  • Business must be required legally to close as part of local or national restrictions and employees must be off work for a minimum of 7 consecutive days.
  • This includes businesses that are required to provide only delivery and collection services from their premises or food and drink outdoors from their premises.
  • The employee must have been on the employer RTI submission made to HMRC on or before 23rd

 

What is the extra support?

  • Government will pay two thirds of each employee’s salary up to a monthly maximum of £2,100.
  • No employer salary top up will be required.
  • The employer will be required to cover the cost of the employers NIC and pension contributions.
  • The claims to be made in arrears through a HMRC Claims portal to be available from early December 2020.
  • Affected small businesses with a rateable value of or below £15,000 can now claim a grant of £1,300 per month.
  • Affected medium sized businesses with a rateable value between £15,000 and £51,000 can claim a grant of £2,000 per month.
  • Affected larger businesses can claim a grant of £3,000 per month.
  • The grant will be payable every 2 weeks and paid in arrears.

Further details and information are expected in the coming weeks

If you wish to discuss any of these or other issue, please do contact us.