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Extension of Furlough Scheme

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Following the announcement of a second national lockdown, Rishi Sunak has extended the Furlough Scheme until 2nd December. 

The Government have also announced some further extensions of support, and there may well be more to follow.

The Job Retention Scheme

The Job Retention Scheme (JRS) that was due to end on Saturday will be extended until 2nd December, and the Job Support Scheme is delayed until the JRS ends.

The extended scheme is expected to be in-line with the existing JRS, and it will:

  • apply to employees on full furlough or working part-time;
  • with employees receiving 80% of their normal wages for furloughed hours;
  • the Government will pay 80% of the normal wages for the furloughed hours, capped at £2,500 per month for full furlough;
  • the employer will pay National Insurance and pension contributions and meet the costs of hours worked. 

At this stage, it is unclear whether or not it will be possible to reverse redundancies implemented in accordance with the original deadline. Further details on this point and more regarding the JRS changes are due to follow in the coming days.

Business Grants

Businesses that are required to shut their premises due to the National or Local Lockdown will qualify for business grants. The grant depends on the rateable value of the property but for premises with a rateable value:

  • below £15k the grant is £1,334 per month;
  • from £15k to £51k the grant is £2,000 per month; and
  • of £51k or over the grant is £3,000 per month.


Mortgage payment holidaysThe mortgage payment holiday scheme will not end and borrowers who are adversely affected by COVID and have not yet had a mortgage payment holiday can claim for up to 6 months, and those who have already started a mortgage payment holiday can top this up to 6 months. 

The FCA will give more details on Monday.

Self-Employed
Although nothing has been announced for the self-employed, we would expect that the grants under the Self-Employed Income Support Scheme would be increased in line with the extension of the JRS, and await to see an announcement on this.

Tax helpline to support businesses affected by coronavirus

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A new HMRC helpline has been launched to help businesses concerned about paying their tax due to coronavirus (COVID-19).

HMRC has a set up a phone helpline to support businesses and self-employed people concerned about not being able to pay their tax due to coronavirus (COVID-19).

The helpline allows any business or self-employed individual who is concerned about paying their tax due to coronavirus to get practical help and advice.

Up to 2,000 experienced call handlers are available to support businesses and individuals when needed.

For those who are unable to pay due to coronavirus, HMRC will discuss your specific circumstances to explore:

  • agreeing an instalment arrangement
  • suspending debt collection proceedings
  • cancelling penalties and interest where you have administrative difficulties contacting or paying HMRC immediately

The helpline number is 0800 0159 559 – and is an addition to other HMRC phone contact numbers.

Opening hours are Monday to Friday 8am to 8pm, and Saturday 8am to 4pm. The helpline will not be available on Bank Holidays.

Chancellor scraps business rates for small firms

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In announcing the budget on Wednesday, the Chancellor said he is scrapping business rates for small firms to help them deal with disruption caused by the coronavirus. The measure, announced in the first budget since October 2018, will see a 100 per cent retail discount apply to all business properties.

“Our manifesto promised that for shops, cinemas, restaurants and music venues with a rateable value of less than £51,000 we would increase their business rates retail discount to 50 per cent,” said Prime Minister Boris Johnson’s new Chancellor, Rishi Sunak.

“Today I can go further and take the exceptional step for this coming year of abolishing their business rates altogether.”

Mr Sunak also scrapped the tax for 2020-21 for tens of thousands of other businesses in the leisure and hospitality sectors, previously not covered by the policy, including museums, art galleries and theatres; caravan parks and gyms; small hotels; sports clubs; night clubs; club houses and guest houses.

“That is a tax cut worth over £1 billion, saving each business up to £25,000,” he added.

“And it means, over the next 12 months, nearly half of all business properties in England will not pay a penny of business rates.”

Moreover, he announced the launch of a fundamental review, to be concluded at the autumn budget, into the long-term future of business rates.

Going a step further, Mr Sunak announced a £3,000 cash grant per business to any business currently eligible for the small business rates relief.

This, he explained, is a £2 billion cash injection direct to 700,000 of the UK’s smallest businesses.

National Minimum Wage and National Living Wage rates

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The rates for National Living Wage and  National Minimum Wage will increase from 1st April 2017.

  • £7.50 per hour – 25 yrs old and overaa_253248928
  • £7.05 per hour – 21-24 yrs old
  • £5.60 per hour – 18-20 yrs old
  • £4.05 per hour – 16-17 yrs old
  • £3.50 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

The hourly rate for the minimum wage depends on your age and whether you’re an apprentice.

  • Most workers over school leaving age will be entitled to receive the NMW.
  • The NMW /NLW rate is reviewed annually by the Low Pay Commission.
  • HM Revenue & Customs (HRMC) can take employers to court for not paying the NMW/NLW.
  • There are a number of exemptions to those who receive the NMW/NLW. These do not relate to the size of the business, sector, job or region.
  • The compulsory National Living Wage is the national rate set for people aged 25 and over.

 

 

National Minimum Wage Rates From 1st October 2015

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The National Minimum Wage rate per hour depends on your age and whether you’re an apprentice – you must be at least school leaving age to get it.

Year

21 and over

18 to 20

Under 18

Apprentice*

2015 (from 1 October)

£6.70

£5.30

£3.87

£3.30

2014 (current rate)

£6.50

£5.13

£3.79

£2.73

2013

£6.31

£5.03

£3.72

£2.68

2012

£6.19

£4.98

£3.68

£2.65

2011

£6.08

£4.98

£3.68

£2.60

2010

£5.93

£4.92

£3.64

£2.50

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Extension of Furlough Scheme

Following the announcement of a second national lockdown, Rishi Sunak has extended the Furlough Scheme until 2nd December. The Government have also announced some further … more...

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