Home » 22nd October – Covid19 updates

22nd October – Covid19 updates

In light of recent tiered lockdown restrictions being imposed, the government support has been generously amended by Chancellor Rishi Sunak to offer more support.

Overall today’s announcement provided more support for employers and the self-employed. You will be forgiven for being confused by the sheer number of changes being made. Rest assured we are looking at this very carefully and will take account of all of these changes.

The key changes were as follows:

Job Support Scheme (for open businesses)

Key changes here include:

  • Government support for hours not worked has increased from 33% to 61.67%
  • They are also increasing the cap on Government support from £697.92 to £1,541.75
  • Hours that an employee needs to work as a minimum has reduced to 20% of their usual working hours instead of 33%
  • This is specifically for businesses who have seen their demand affected by COVID, but remain able to operate safely
  • Employers contribution for non-worked hours is now 5% not 33%, and capped at £125 per month

Some additional points to note:

  • Using this does not affect the eligibility for the Job Retention Bonus
  • Employees or employers DO NOT have to have previously used the Job Retention Scheme
  • This will be means-tested in the instance of large employers (more than 250 employees), but not for small and medium companies or charities
  • Temporary working arrangement for reduced hours must be communicated in writing with employees
  • Employees must have been on an RTI between 6th April 2019 and 23rd September 2020

Job Support Scheme (for businesses closed under tier 3 restrictions)

  • The government will pay 67% of an employee’s gross wage up to a maximum of £2,100 per month
  • No requirement for the employer to top up

 A point to note – all Employers NI and pension contributions are the responsibility of the Employer under the JSS, the government grant is for gross salary only.

Business Grants

  • Local Authorities to support businesses in the hospitality sector, hotels, B&Bs, and leisure businesses through the way of rates grants
    • Properties with a rateable value up to £15,000 to receive grants of £934 per month
    • Properties with a rateable value of between £15,001 and £50,999 to receive grants of £1,400 per month
    • Properties with a rateable value of £51,000 and above to receive grants of £2,100 per month
  • Local Authorities will have a discretionary additional 5% to provide to businesses that are loosely attached to the above sectors
  • Those businesses forced to close under Tier 3 restrictions qualify for greater support, up to £3,000

Self Employed

  • The SEISS grants provided previously are happening again, for those who were eligible for the previous 2 grants
  • The first grant will be for 40% of average trading profits to cover November 2020 – January 2021 paid in one lump sum, up to £3,750
  • The second grant will cover February 2021 – April 2021, however, the government has yet to announce the percentage basis for this