After a weekend of devastating news for many, I hope you are all faring up. I know you have all worked hard at making your businesses Covid secure only to be told we must lockdown for the next 4 weeks.
The government have mentioned that there is to be extension to the mortgage payment holiday and have also regurgitated the English grants availability for businesses forced to close due to the Covid-19 regulations, which they originally announced during the weekend of 10th – 11th October 2020.
There will be more updates to follow but for now I have the following information for you……
- The JRS which was due to come to an end on 31st October 2020 has now been extended until at least the beginning of December 2020.
- The Job Support Scheme, which was due to replace the JRS, has been put on a back burner.
- There will be no gap in eligibility for support between the previously announced end date of the JRS and this extension.
What is the nature of the ‘November’ Job Retention Scheme?
- The Government will meet the full 80% of the employees’ wages for the hours not worked, up to a maximum cap of £2,500 per month.
- The employer will still need to account for employer’s national insurance and pension costs.
- Flexible furlough can still be agreed upon, between the employer and employee, where the business remains open.
- The employer will meet the costs for any hours worked.
- The employer can top up the 80% if they so wish.
- They have a UK bank account and PAYE scheme.
- The employer does not need to have put in a Job Retention Scheme claim in the past.
- They must have been on the employer’s PAYE Scheme as at 23.59 on 30th October 2020.
- The Real Time Information (RTI) submission notifying the payment for that employee must have been made to HMRC on or before 30th October 2020.
How to make the claim?
- The Government will announce when the November claims can be made.
- The methodology for calculating the amount of the claim will follow along similar lines to the present JRS structure.
- Employers will need to report and claim for a minimum of 7 consecutive calendar days.
- Employers will be required to report hours worked and the usual hours an employee would be expected to work in the claim period.
Self Employed Income Support Scheme (SEISS)
- The portal for the next round of SISS claims was due to open on 14th December 2020. This has now been moved forward to 30th November.
- The Government will increase the SEISS percentage claim from 40% to 80% for the month of November.
- For the 3 months covering the period November to January inclusive, the total grant claim will be 55% of the average trading profit up to a maximum of £5,160.
- If you have self-employed please make sure they are aware that they have to make the claim themselves.
Government Backed Loans
- The application date for either the Coronavirus Business Interruption Loan Schemes, Bounce Back Loan Scheme and the Future Fund Scheme has been extended from 30th November 2020 to 31st January 2021.
- If a business has not claimed the maximum under the Bounce Back Loan Scheme (BBL) (i.e. less than 25% of their turnover, up to a max. borrowing of £50,000) then, from next week, they will be able to top up their BBL.
Mortgage Payment Holidays
- The Covid-19 mortgage payment holiday has been extended beyond 31st October 2020.
- Those who have yet to claim a mortgage holiday can now do so for up to 6 months, without affecting their credit rating.
- Those who have already started a mortgage holiday will be able to extend this to 6 months, again without affecting their credit rating.
English Business Grants
- Properties required to close under national or local Covid-19 restrictions will be eligible for a grant based upon rateable value.
- Properties with rateable value £15,000 or under – grant of £1,334 per month or £667 per two weeks.
- Properties with rateable value £15,000 to £51,000 – grant of £2,000 per month or £1,000 per two weeks.
- Properties with rateable value £51,001 or more – grant of £3,000 per month or £1,500 per two weeks.
In our blog published on 31/08/2020, I mentioned that HMRC had had updated their 30 day CGT Return portal to enable taxpayers and their agents to report multiple property disposals made during the course of the same tax year.
I am delighted to announce that HMRC have further improved the functionality of said portal. Since 14th October you can now amend the CGT Return online. Prior to that date you had to contact HMRC and complete a paper Return amendment. All is well with the world.
Interesting to note
It was interesting reading from the Government that between July and September 2020 there were 221,000 new incorporations and only 102,000 corporate dissolutions in the UK
The differential could be put down to the fact that the Government introduced a temporary pause to the strike off process back in mid April to give businesses affected by the Covid-19 outbreak time to update their Company House records. This pause came to an end on 10th September.
If the news of a second lockdown has caused you concern for you and your business, please use the following link to book a ‘Trading in Difficult Times’ meeting and we can talk it through together.