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Updates from the Clayton & Brewill team.
CJRS extended until April
In his briefing at the end of October last year, the Prime Minister announced additional financial support measures for businesses across the UK as part of the government’s plan to keep the economy moving through the new national lockdown. This included extending the Coronavirus Job Retention Scheme (CJRS), with the government later confirming that the scheme will continue running until the end of April 2021. Nottingham chartered accountants Clayton & Brewill provides an overview of the measures.
CJRS extended
The CJRS had originally been planned to come to a close on 31st October 2020. But in his briefing, Boris Johnson revealed that the furlough scheme was to be extended as the nation entered a new national lockdown on 5th November. Initially extended to December, the government later revealed it will be further extended to April 2021 in a bid to give businesses security through the winter. It has been reported that the Chancellor may extend the scheme beyond April in his March budget, though this is unconfirmed as yet.
Having been scaled back in October to cover 60% of salaries, the furlough scheme is continuing on in its flexible format. However, furloughed employees can now receive 80% of their current salary for hours not worked, up to a maximum of £2,500. The furlough scheme will retain its flexibility; this allows employers to bring furloughed employees back to work on a part-time basis or furlough them full-time.
Employers will continue to pay for hours worked as normal. They will also be asked to cover National Insurance and employer pension contributions for hours not worked.
Who is eligible?
For periods from 1 November onwards, you can claim for employees who were employed on 30 October 2020, as long as you have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.
All employers with a UK, Isle of Man or Channel Island bank account and a UK PAYE scheme can claim the grant. You do not need to have previously claimed for an employee before the 30 October 2020 to claim for periods from 1 November 2020.
Employees on any type of contract are eligible. It would be wise for all businesses using the CJRS to keep detailed records of workers’ pay and hours worked, so that it will be easier to make the claims once the portal is available.
Clayton & Brewill can calculate a CJRS claim total for you and submit it on your behalf. We’ve already taken care of hundreds of claims for both existing and new clients, with a range of payroll sizes. If you need help making a claim, please do get in touch.
October briefing: other measures announced
Local Restrictions Support Grant
Business premises across England that have no choice but to close will receive grants worth up to £3,000 per month under the Local Restrictions Support Grant.
- Premises with a rateable value of £15k or under will receive £1,334 per month, or £667 per two weeks;
- Those with a rateable value of between £15k-£51k will receive £2,000 per month, or £1,000 per two weeks;
- Those with a rateable value of £51k or over will receive £3,000 per month, or £1,500 per two weeks.
Mortgage holidays extended
Mortgage holidays are also being extended. Borrowers who have been impacted by coronavirus and have not yet had a mortgage payment holiday will be entitled to a six-month holiday. Those who have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.