Extension of Furlough Job Retention Scheme (JRS) to 31 March 2021
Following the announcement of a £150bn injection of crisis support funding and interest rates to remain at 0.1% by the Bank of England yesterday, the Chancellor has extended the Furlough Job Retention Scheme (JRS) to 31 March 2021.
Payments are set to remain at 80% of employees’ wages until 31 January, up to a maximum of £2,500 per month (proportional to the hours not worked by the employee). The Government will pay the 80% and you will only be asked to cover employers’ NI and pension contributions for furloughed hours. You must also continue to pay the employee for any hours worked in the normal way, as well as employer National Insurance and employer pension contributions.
The Government will then review the policy in January to “decide whether economic circumstances are improving enough to ask employers to contribute more”.
It was confirmed that the Job Retention Bonus will no longer be paid in February 2021, as the JRS will be available at that time. An alternative retention incentive will be put in place at the appropriate time.
SEISS doubled for November
Last month, the Government announced that grants under the Self-Employment Income Support Scheme (SEISS) for the period from 1 November 2020 to 31 January 2021 would be 40% of profits.
The amount of this grant, which applies across all the UK, has now increased to 80% of average trading profits for the month of November 2020. The grant for December and January remains at 40%.
Claims for SEISS grants will also be open from 30 November rather than 14 December, as originally planned. A new SEISS claim website will be available on 30 November. Beware of scam emails that may be circulating inviting you to make your claim prior to this date.
Bounce Back Loans – deadline extended, top up option available
The deadline to apply for a Bounce Back Loan has also been extended until 31 January 2021. This loan is 100% Government backed, worth up to
If you didn’t borrow the maximum amount when you first applied, you can now ‘top up’ your loan. This option can only be used once and should be available from Monday 9 November. Note, the amount you can apply for is capped at 25% of your total 2019 turnover.
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We are here during Lockdown 2.0 to help you. If you have any questions on the above changes please let us know and we will be happy to help.
Stay safe and well
The Clear Vision Team