For the third time this week, Jack and I update our blog with more changes to the support available from the Government. As we enter into a new 4-week lockdown, the Chancellor announced only yesterday a significant extension to the Furlough scheme and enhanced support for the self-employed.
The previous updates were explained in our two earlier blogs (as posted on 2nd and 3rd November).
Here are the key updates announced yesterday…
Furlough scheme (CJRS):
- Furlough has been extended to March 2021.
- The government will pay up to 80% of an employee’s wages for hours not worked.
- “Flexi-furlough” is available so employees, including directors, can work reduced hours or not at all.
- The 80% rate applies to November and December, but will be reviewed in the New Year so might change.
- Employers do not need to have previously used the scheme nor does an employee to have been previously furloughed.
- Qualifying employees need to have been on payroll as at 30 October 2020.
- As part of this revised package, if an employer has made any staff redundant after 23rd September, it is possible to rehire them and put back on furlough.
- As a result of the extension, the £1,000 per employee job retention bonus due to be paid to employers who had brought individuals back from furlough in February 2021 has been delayed.
Self-employed Income Support Grant (SEISS)
- Self-employment grants have been restored to 80% until January with a maximum of £7,500 for the period.
- The rate will be reviewed for the February to April claim.
- See earlier blogs from 2nd and 3rd November for rest of details.
Grants and Loans
- Deadlines for the Bounce Back Loan and CBILs (Business Interruption Loan) have been extended to 31 January 2021.
- Those businesses which have drawn down a Bounce Back Loan of less than £50,000, but which would have been eligible for a higher amount, will be able to top up the original loan to a maximum total loan of the lower of £50,000 and 25% of annual turnover.
- See earlier blogs from 2nd and 3rd November November for details on Government Grants available. Remember, these can only be accessed via the local authority websites.
In the meantime, you can rely on us to update you as new announcements are made. In the meantime, stay safe.