Saturday, October 24, 2020

Business Grants from the Coronavirus Restrictions Fund

There are currently 2 funds available under this scheme - the business closure fund and the business hardship fund. Grants are administered by local authorities to whom any applications must be made by 3 November (for the current set of restrictions). The amount of grant is dependent upon the rateable value of the premises. To be eligible for the business closure fund your business must have been required by law to close (except for takeaway) under the new restrictions. For the business hardship fund you must be a hospitality business or gym required by the regulations to operate in a restricted way.

SEISS - increased support

As with the Job Support Scheme, then Chancellor has improved the support for the self-employed through the extension to the Self-Employment Income Support Scheme. The extension will last for 6 months from November 2020 to April 2021 with grants paid out in 2 lump sums covering each 3 month period. In the first 3 months the Government will now pay a grant to eligible individuals amounting to 40% of average monthly trading profits capped at £3,750 in total. The level of the second grant will be set in due course.

In broad terms you will be eligible if you were eligible for the first tranches of grant (even if you did not claim) and your trading continues to be affected by the virus.

Job Support Scheme - changed before it starts

The ink had hardly dried on the rules for the scheme when the Chancellor decided to increase the amount of support under the scheme and widen its scope. Employers will now be able to obtain support for any employees working at least 20% of their normal hours rather than the original 33%. Significantly the employer will now only pay 5% of pay for hours not worked and the Government will pay 61.67% up to a cap of £1,541.75 per month. This leaves the employee in the same position as originally envisaged under the scheme but significantly reduces the employer contribution.

Wednesday, October 14, 2020

SEISS - Last chance

Please remember that the last date for any claims under the SEISS for the second tranche of grants is 19 October 2020. Time is running out.