05/11/2020
COVID-19 UPDATE - 5th November 2020
Remember, remember, the 5th of November - It's Lockdown Part II....
We'd normally be preparing for a night of fireworks and bonfires but instead England is entering into a new four-week lockdown, with people told to stay at home and non-essential shops, pubs and gyms ordered to close. Full guidance is yet to be published but this is what we know so far:
Furlough Scheme extended
• The Coronavirus Job Retention Scheme-CJRS (furlough payments) will be extended until December. (To be eligible to be claimed for under this extension, employees must be on an employer's PAYE payroll by 23:59 on 30 October 2020).
• Neither the employer nor the employee needs to have previously used the CJRS
• Employers will have the flexibility to bring furloughed employees back to work on a part time basis or furlough them full time
• Employees will receive 80% of their current salary for hours not worked (up to a maximum of £2500/Month) from 1 November
• There is no gap in support from the previous end date of the job retention scheme and this extension
• The government will fund the 80% of unworked hours and employers will cover employer pension and NIC
• When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days
• The Job Support Scheme (due to start in November) has been delayed until the JRS has finished
• There will be a short delay in claims from November whilst HMRC update their systems
• Employers must agree working hours with employees so they know if they are furloughed fully or part-time in November
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.
Mortgage holidays will no longer end on 31st October
• Borrowers who have not yet had a mortgage holiday can request from their lender a pause in repayments, that can last up to six months.
• Those who have had their payments deferred already, can extend their mortgage holiday until they reach the six-month limit.
• During this period interest will still accrue on what borrowers owe.
• Borrowers who have already reached the maximum six-month mortgage holiday and are still facing difficulty making repayments, are being advised by the FCA to speak to their lender about a tailored support plan.
Self Employment Income Support Scheme (SEISS)
• This will be increased from 40% to 55% of average trading profits
• This service now opens on the earlier date of 30th November
• To be eligible self-employed individuals (including members of a partnership) must:
- Have been previously eligible for the Self-Employed Income
- Support Scheme first and second grant
Intend to continue to trade and either:
- Are currently actively trading but are impacted by reduced demand due to coronavirus
- Were previously trading but are temporarily unable to do so due to coronavirus
There will be 3 grants:
The first grant will cover a three month period from start of November until end of January, providing taxable grant covering 55% of average monthly trading profits. This will be paid as a single instalment, covering three months profits capped at £5160.
The second grant covers a three month period for February to April and the level of this grant is under review
The third grant will cover a 3 month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant calculated at 80% of 3 months average monthly trading profits, paid out in a single instalment and capped at £7,500 in total. This is an increase from the previously announced amount of 55%. The online service for the next grant will be available from 30 November 2020. HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.
The Government are providing the same level of support for the self-employed as is being provided for employees through the Coronavirus Job Retention Scheme which has also been extended until March 2021. For claim periods running to January 2021, employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. The £2,500 cap is proportional to the hours not worked.
Please remain vigilant about scams.
These may mimic government messages or be automated phone calls and you should not open any content on any attachments sent. To help HMRC investigations, report and forward all HMRC related phishing emails/phone calls to [email protected] (send phishing text messages to 60599) with details of date & time of call/message, the message/call contents and phone number.
There are specific scams to be aware of; emails telling you can get a tax refund to help with the coronavirus outbreak. Text messages telling customers about goodwill payments or stating you will be fined and asking you to call to appeal or asking for personal information to claim a tax refund. Emails telling you that you have a refund (HMRC will never send email notifications about this).
Please do not hesitate to contact our office if you have any queries.
