Second National Lockdown

We are contacting you to advise you on the initial news and support announced in relation to the second national lockdown announced on Saturday evening.


Furlough scheme extended

The Furlough scheme (CJRS) has been extended for a month with employees receiving 80% of their current salary for hours not worked. This is up to a maximum of £2,500 per month. Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time. Employers will pay the National insurance and employer pension contributions.

All employers with a UK bank account and UK PAYE scheme can claim the grant. Neither the employer or employee needs to have previously used the CJRS. 

To be eligible to be under this extension, employees must be on an employer's PAYE with an RTI submission prior to midnight at 30th October 2020.

As a consequence the Job support scheme which was due to start on 1st November has been postponed until the furlough scheme ends.

More information can be found below: 

https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced


Self Employed (SEISS Grants)

The government will provide two taxable SEISS grants to support those experiencing reduced demand due to Covid-19 but are continuing to trade, or temporarily cannot trade.

It will be available to anyone who was previously eligible for the first two SEISS grants

The grants will be paid in two lump sums. The first covering November to the end of January and the second from 1 February 2021 to 30 April 2021. For the first grant the amount is calculated on 55% of three months' average trading profits, paid out in a single installment and capped at £5,160. The second grant amount is being reviewed by HMRC and will be set at a later date. The grants are taxable and subject to national insurance contributions.

https://www.gov.uk/government/publications/self-employment-income-support-scheme-grant-extension/self-employment-income-support-scheme-grant-extension


Business Grants

Businesses required to close in England due to local or national restrictions will be eligible for the following:

  • 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.


Local restrictions support grant (LRSG)

At present it is unclear if the new business grants announced on Saturday replace this scheme, but the details are outlined below.

https://www.gov.uk/guidance/check-if-youre-eligible-for-the-coronavirus-local-restrictions-support-grant

The Local Restrictions Support Grant (LRSG) supports businesses that have been closed due to temporary Covid lockdown restrictions imposed by the governement. The amount available depends upon the rateable value of the premises and details are on this factsheet.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/929229/BUSINESS_GRANTS_FACTSHEET.pdf

Your business may be eligible if it:

  • occupies property on which it pays business rates

  • is in a local lockdown area and has been required to close because of the formal publication of local restrictions guidance that resulted in a first full day of closure on or after 9 September. This funding is not retrospective

  • has been required to close for at least 3 weeks because of the lockdown

  • has been unable to provide its usual in-person customer service from its premises

For example this could include non-essential retail, personal services or cafes/restaurants that operate primarily as an in-person venue, but which have been forced to close those services and provide a takeaway-only service instead.

Eligible businesses will get one grant for each property liable for business rates within the lockdown zone.

Businesses that are required to close but do not pay business rates may be eligible for funding at the discretion of the local council, as may businesses not required to close but which are severely impacted.

If you have any queries about the above please do not hesitate to contact us.

We wish you and your business all the best through this challenging period.

Paul Smith