On 5th November 2020, Chancellor Rishi Sunak announced changes to the government support packages for businesses that were previously extended on 12th October 2020. This means that businesses will receive additional support from the government to help them through the pandemic during the coming winter months.
Coronavirus Job Retention Scheme (CJRS)
The Chancellor has announced that CJRS will be extended until the end of March 2021 for all parts of the UK. For claim periods running to 31 January 2021, the UK Government will pay 80% of employees’ usual wages for hours not worked, up to a cap of £2,500 per month. The UK Government will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more.
It was also confirmed that the Job Retention Bonus will no longer be paid in February 2021, as CJRS will be available at that time. An alternative retention incentive will be put in place at the appropriate time.
As we understand it, as part of the revised scheme, anyone made redundant after 23rd September can be rehired and put back on furlough.
If you intend to claim under the CJRS, please look at information published today on the Government’s website on how you can check if you’re eligible to claim, and what you need to agree with your employees. You can find this on GOV.UK by searching ‘Extension to the Coronavirus Job Retention Scheme’.
This latest information applies for CJRS claim periods from 1 November 2020. The final date for claims for the period up to 31 October is still 30 November 2020.
Further updates are coming out almost daily from the Government so it is worth subscribing to their Covid 19 Support emails to ensure you don’t miss anything.
Self-employment Income Support Scheme
Self-employed businesses will be able to claim two taxable grants to support them through the six months beginning November 2020, with each grant covering a three-month period.
As per the Chancellor’s announcement, the first grant covering the period from November 2020 – January 2021 will cover 40% of average monthly profits, instead of the original 20%, taking the maximum grant from £1,875 to £3,750. The government will review and set the level of the second grant, covering the period from January 2021 – April 2021, in due course. Each grant will still be paid out in a single instalment covering three months’ worth of profits (based on the 18/19 tax calculation).
Grants are available for businesses forced to close due to local areas being placed into Tier 3 (very high alert level) restrictions, including Greater Manchester. Eligible businesses will be able to claim a grant of up to £3,000 over a four-week period.
For businesses that remain open in Tier 3, support is being provided through business support packages provided to Local Authorities as they move into the alert level. In Greater Manchester, which moved into Tier 3 restrictions on 23 October 2020, a £60million support package for businesses was announced. This will be distributed by relevant Local Authorities, who will decide on the eligibility criteria and allocation in due course.
Business premises forced to close are to receive grants worth up to £3,000 per month depending on the property’s rateable value.
- 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.
How we can help
MCC Accountants is an accountancy firm that helps SMEs in Manchester and Salford with their accounting needs. We understand the struggles businesses in these areas are facing due to tightened local restrictions. If you need further help and advice understanding the support that is currently available to you, we will do our very best to assist. Call us on 0161 707 1500 or get in touch using our contact page.