Covid-19 Update

Guidance is constantly changing with the schemes on offer to support businesses and individuals throughout this period of uncertainty.I have outlined some of the key updates below, however if you have any concerns or worries please do not hesitate to contact us and we will be more than happy to help wherever we can.

Job Retention Scheme

The scheme will close to new entrants from 30 June and from this point onwards employers will only be able to furlough employees who have been furloughed for a full three-week period prior to 30 June. From the 1 July, employers can bring employees back to work who have previously been furloughed. They can be bought back to work for any amount of time and any shift pattern whilst the employer can still claim the Job Retention Scheme grant for their normal hours not worked.

Coronavirus Statutory Sick Pay Rebate Scheme

The online service to enable you to claim back any statutory sick pay paid to employees who have been off work due to Coronavirus is now available online. The repayment will cover up to 2 weeks of statutory sick pay starting from the first qualifying day of sickness if an employee is unable to work due to having Coronavirus symptoms or if they are self-isolating or shielding due to Coronavirus.

Self Employed Income Support Scheme

The scheme allows self employed workers to claim a taxable grant worth 80% of their average monthly profits capped at £7,500 in total. If you are eligible and want to claim the first grant, you must make your claim online to HMRC on or before 13 July 2020. As agents we are unable to submit this claim on your behalf, but we can assist with how to access it online. It has been announced that the scheme is being extended and you will be able to make a claim for a second and final grant in August. If you are eligible for the second and final phase of the grant it will be worth 70% of your average monthly trading profits, paid in a single instalment covering an additional 3 months of profits and capped at a total of £6,750. Ellie writes more about the possible clawback of this grant.

Business Bounce Back Loan

The scheme helps small and medium-sized businesses borrow between £2,000 and up to 25% of their turnover, capped at a maximum loan of £50,000. The government guarantees 100% of the loan and there will not be any fees or interest to pay for the first 12 months, after this the interest rate will be 2.5% per year. This is open to the majority of UK businesses who were established before 1 March 2020 and have been adversely impacted from Coronavirus.

Local Authority Discretionary Grants Fund

Small and micro businesses which have fixed property costs and are not eligible for the Small Business Grant Fund or the Retail, Hospitality and Leisure Grant Fund may be eligible for this scheme. This is aimed at businesses based in England with relatively high ongoing fixed property related costs who have not been eligible for any other support and you should apply by contacting your local authority.

Written by Alice Chapple ACCA ACIPP

Sign Up to Our Newsletter