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November 2020 lockdown

The help for the self employed and businesses affected by the November 2020 lockdown has been updated.

Self Employment Income Support Extension

The Self-Employment Income Support Scheme grant extension provides critical support to the self-employed in the form of 2 further grants, each available for 3 month periods covering November 2020 to January 2021 and February 2021 to April 2021.

Who can claim

To be eligible for the grant extension self-employed individuals, including members of partnerships, must:

  • have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
  • declare that they 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

What the grant extension covers

The extension will last for 6 months, from November 2020 to April 2021. Grants will be paid in 2 lump sum instalments each covering a 3 month period.

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 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.

The Government has already announced that there will be a fourth grant covering February 2021 to April 2021. The Government will set out further details, including the level, of the fourth grant in due course.

The grants are taxable income and also subject to National Insurance contributions.

The online claim service will be available from 30th November 2020.

Job Retention Scheme Extension

Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme, which will continue for a further month.

Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time, and will only be asked to cover National Insurance and employer pension contributions which, for the average claim, accounts for just 5% of total employment costs.

The Job Support Scheme, which was scheduled to come in on Sunday 1st November, has been postponed until the furlough scheme ends.

This extended Job Retention Scheme will operate as the previous scheme did, with businesses being paid upfront to cover wages costs. There will be a short period when we need to change the legal terms of the scheme and update the system and businesses will be paid in arrears for that period.

The CJRS is being extended until December. The level of the grant will mirror levels available under the CJRS in August, so the government will pay 80% of wages up to a cap of £2,500 and employers will pay employer National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work.

As under the current CJRS, flexible furloughing will be allowed in addition to full-time furloughing.

Further details, including how to claim this extended support through an updated claims service, will be provided shortly.

The Job Support Scheme will be introduced following the end of the CJRS.

Eligibility criteria

  • All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the CJRS.
  • The government expects that publicly funded organisations will not use the scheme, as has already been the case for CJRS, but partially publicly funded organisations may be eligible where their private revenues have been disrupted. All other eligibility requirements apply to these employers.
  • To be eligible to be claimed for under this extension, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.
    *As under the current CJRS rules:
  • Employees can be on any type of contract. Employers will be able to agree any working arrangements with employees.
  • Employers can claim the grant for the hours their employees are not working, calculated by reference to their usual hours worked in a claim period. Such calculations will broadly follow the same methodology as currently under the CJRS.
  • When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days.
  • Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period.
  • For worked hours, employees will be paid by their employer subject to their employment contract and employers will be responsible for paying the tax and NICs due on those amounts.

Grants for Business Grants – businesses affected by the 5 November 2020 lockdown.

The Government has announced further support for businesses that have been required to close with effect from 5 November 2020 due to the covid-19 crisis. To be eligible for the schemes will depend on the what the main purposes of your business is and if this business does fall within the mandated scheme or the discretionary scheme.

The Local Restrictions Support Grant (closed) scheme- (strict eligibility qualifying conditions)

The application process for this scheme is now open. It is important that you read the guidelines below before completing the application form to establish if your business is eligible to qualify for this grant. The key point for qualification is that your business must have been trading successfully on 4 November 2020 and have been required to close on 5 November 2020 by the government lockdown restrictions, not that you have chosen to close due to lack of trade during the month.

Certain business however will still be eligible for this business grant where they continue to offer delivery and click and collect services (where items are pre-ordered without entering the premises). Public houses, cafes will be eligible for on the same basis as above. What this means is that the vast majority of offices, factories, workshops and other small businesses will not qualify for the scheme this time, but if trade has been affected by the covid-19 crisis they may be eligible to apply for the discretionary grant scheme (called the additional restrictions grant), please see the bottom of this page for details of this scheme.

Businesses that qualify for the Local Restrictions Support Grant (closed)

  • Restaurants, cafes, bars
  • Social clubs
  • Public houses
  • Cinemas, theatres
  • Nightclubs, dance halls, skating rinks
  • Bingo halls, concert halls, casinos]Museums, galleries
  • Spas
  • Nail, beauty salons, hair salons and barbers, tanning salons, tattoo and piercing parlours
  • Dance studious, gyms, swimming pools, soft play centres
  • Circuses, funfairs, theme parks
  • Outdoor sport centres including stables, shooting and water sports, golf ranges and water parks
  • Showrooms for all vehicles and car washes
  • Auction houses
  • Conference centres

Qualification for this scheme is based on if you/your company is the business rates payer and your property is listed in the local non domestic rates rating list. If you meet this criteria depending on the rateable value of your business property will depend how much grant you will be awarded for the month of lockdown, this is set out as follows:

Local lockdown grants can be applied for from Buckinghamshire county council.

Or contact AJR & Co Ltd for further advice.