The latest announcement from the government
With the announcement of a second national lockdown for England from 5 November until at least the 2 December, people and businesses across the UK are being provided with additional financial support.
The Coronavirus job retention scheme (CJRS), more commonly known as the furlough scheme, was originally due to end on 31 October. However, the scheme has now been extended, with the UK government paying 80% of wages for the hours furloughed employees do not work, up to a cap of £2,500 for periods from 1 November until the end of March 2021. The UK government will review the policy in January to decide whether circumstances have improved enough to ask employers to contribute more.
The new job support scheme, which was due to start on 1 November, has now been postponed, and will be introduced following the end of the CJRS.
How it works
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The extended CJRS will operate similarly to the previous scheme, and there will be no gap in support between the previously announced end date of the scheme and the extension
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Employers small or large, charitable, or non-profit, are eligible for the extended CJRS
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Employers will need to pay all employer National Insurance Contributions (NIC) and pension contributions
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For hours not worked by the employee, the government will pay 80% of wages up to a cap of £2,500
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Employers can choose to top up their furloughed employees’ wages should they wish, but they are not required to do so
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Flexible furloughing will be allowed in addition to full-time furloughing
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Employers should continue to pay employees for hours worked in the normal way
Eligibility
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All employers with a UK bank account and UK PAYE schemes can claim
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Neither the employers nor the employees need to have previously used the scheme to be eligible
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Companies can claim for employees who were on their PATE payroll on 30 October 2020. They must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 30 October 2020
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If employees were on the payroll on 23 September 2020 and were either made redundant or stopped working after this date, they can also qualify for the scheme if their company re-employs them
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Employees can be on any type of contract. Employers will also be able to agree any working arrangements with employees
Business Grants
In addition to the extension of the scheme, business premises which will be forced to close under the second national lockdown are to receive grants worth up to £3,000 per month under the Local Restrictions Support grant. A further £1.1bn is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support local businesses more broadly.
Further support
Guidance and live webinars offering more support are available to book online at GOV.UK.
If your business is struggling in the wake of Covid-19, and you are in need of assistance or advice, please contact us for a free, confidential and no obligation consultation.
