Coronavirus Job Retention Scheme (CJRS) and Job Retention Bonus
The CJRS has been extended until 30 April 2021.
The government will continue to pay 80% of the salary of employees for hours not worked until the end of April. Employers will only be required to pay wages, National Insurance Contributions (NICS) and pensions for hours worked; and NICS and pensions for hours not worked.
Kickstart Scheme and Measures to Help People Find Work
In order to support people finding jobs, the Chancellor announced the Kickstart Scheme, which will provide £2 billion to support the creation of “high quality” six-month work placements for 16 to 24-year-olds on Universal Credit and at risk of long-term unemployment.
The Government will provide employers that offer the placements funding equivalent to 100 per cent of the relevant level of the National Minimum Wage (NMW) for 25 hours a week. It will also cover the associated Employer NICs and minimum automatic enrolment pension contributions.
The Chancellor, Rishi Sunak, also outlined additional measures, including funding for traineeships and employers that hire new apprentices, as well as funding for several careers and job-finding programmes.
The apprenticeships funding will provide £2,000 to employers in England for every apprentice hired under the age of 25 and £1,500 for each newly hired apprentice aged 25 or older. This funding is in addition to schemes already in place to support employers in taking on apprentices.
Mortgage payment holiday
As announced on 31 October, mortgage payment holidays will no longer end. Borrowers who have been impacted by Coronavirus and have not yet had a mortgage payment holiday will be entitled to a six month holiday, and those that have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.
There is a temporary cut in Stamp Duty Land Tax (SDLT) from 8 July by raising the nil-rate band from £125,000 to £500,000 until 31 March 2021. The Treasury estimates that, as a consequence, around nine in 10 people buying a main residence will pay no SDLT.
VAT Deferral Scheme
Expansion of HMRC’s Time to Pay Arrangements
Deferral of Self-Assessment Payment
Self-Employment Income Support Scheme (SEISS)
SEISS is in place until April 2021. The scheme is currently in its third stage and will offer grants to the self-employed at 80 per cent of average trading profits for November to January, capped at £7,500 in total.
Access to Finance schemes:
- Under the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS), the Government provides lenders with an 80 per cent guarantee to enable them to support viable small and medium sized enterprises (SMEs) and larger businesses respectively.
- Under the Bounce Back Loans Scheme (BBLS), the Government provides lenders with a 100 per cent guarantee to enable them to provide loans between £2,000 and £50,000 to small and medium-sized businesses with a simple, streamlined application process.
- All three government-backed loan schemes are open until the end of January 2021.
Local Restrictions Support Grants:
Businesses in England that are forced to close will receive up to £3,000 for each 28 day period. Where businesses have not been required to close but have been severely affected by restrictions in tier 2 or tier 3 areas, local authorities will receive funding that will enable them to make grants worth up to £2,100 for each 28 day period.
For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.
Business Rates holiday:
All eligible businesses in the retail, hospitality and leisure sectors will pay no business rates in England for 12 months from 1 April 2020, and nurseries in England will also receive a one-year holiday.
The Coronavirus Large Business Interruption Loan Scheme (CLBILS)
CLBILS helps medium and large sized businesses to access loans and other kinds of finance up to £200 million. The government guarantees 80% of the finance to the lender.
You can apply for a loan if your business:
- is based in the UK
- has an annual turnover of over £45 million
- has not received support under the Bank of England’s COVID-19 Corporate Financing Facility, for investment grade companies.
You need to show that:
- your business would be viable were it not for the pandemic
- your business has been affected by Coronavirus
- the loan will enable you to trade out of any short-term to medium-term difficulty resulting from Coronavirus
If you’re borrowing more than £50 million you must agree to restrictions on dividend payments, senior pay and share buy-backs during the period of the loan. Check the eligibility requirements.
Reduced VAT rate for hospitality and tourism:
The Government is extending the reduced VAT rate of 5% for eligible businesses in the hospitality and tourism sectors until 31 March 2021.
Business Rates Holiday
Protection against aggressive rent collection and closure
Find out more here.
For further information or to arrange for a no obligation preliminary discussion on how your company could qualify under this Government business support scheme, contact Steve Govey or your usual Beavis Morgan Client Partner.
Support for SMEs focusing on R&D
This is a fast-changing situation and it is anticipated that the new measures announced will continue to evolve.
The team at Beavis Morgan is on hand to guide business owners and managers through the weeks and months ahead.
We will continually monitor the situation and update you via this online portal. We also offer the opportunity for you to receive news alerts as they happen directly to your inbox.
You can register to receive these alerts via the contact form provided on this page.
Alternatively, if you have any concerns or queries and require business advice and support at this challenging time, email us at firstname.lastname@example.org.