Following our previous update, there is now further information on the support measures announced by the chancellor for businesses affected by Coronavirus.
Coronavirus Job Retention Scheme
The furlough scheme has been extended and will remain open until 31 March 2021.
Employees will receive 80% of their salary for hours not worked up to January 2021. The amount after January will be announced closer to the time. Employers across the UK can claim, whether their businesses are open or closed. Claims must be submitted within 14 days of the end of the month. Employees with a leaving date after 23 September 2020 can be reinstated.
Job Retention Bonus
Unfortunately, the planned retention bonus which would have paid £1k for each furloughed employee who was retained in employment has been scraped for now.
The chancellor has promised a new “retention incentive” which will be announced at an appropriate time.
Self Employed Income Support Scheme
There are a further 2 grants available for the Self Employed. The grants are available for 3 months and the periods cover November 2020 to January 2021 and February 2021 to April 2021.
Am I eligible?
- You must have been eligible for the first two grants in order to qualify, even if you did not claim them.
- You must declare that you intend to continue to trade and either are currently actively trading but impacted by reduced demand or you were previously trading but are unable to work due to coronavirus.
- The third grant will be 80% of 3 months average monthly profits (capped at £7,500) and will be available from 30 November.
Details of the subsequent grant are yet to be announced.
Bounce Back Loan
If you borrowed less that you were entitled to (between £2k and 25% of turnover), you can top up the existing loan to the maximum amount (£50k).
This will be available from 10th November 2020 until 31 January 2021.