"Lockdown 2" - New support including extension of The Job Retention Scheme
Due to end on 31st October 2020 to be replaced by the new less generous “Job Support Scheme”, it was announced today that as England moves into a second National Lockdown, the Job Retention Scheme, or “Furlough” as it has become known, will continue throughout November.
Employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the current scheme, which ends today.
If we run your PAYE, then please let us know if you have put staff back onto furlough.
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.
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.
For hours not worked by the employee, the government will pay 80% of wages up to a cap of £2,500. The grant must be paid to the employee in full.
Employers will pay employer NICs and pension contributions, and should continue to pay the employee for hours worked in the normal way.
As with the current CJRS, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.
The Government will confirm shortly when claims can first be made in respect of employee wage costs during November, but there will be no gap in eligibility for support between the previously announced end-date of CJRS and this extension.
Business Grants linked to rates
There is also further support in the form of grants for businesses forced to close.
These are locally devolved and you will need to review the guidance either online or directly with your local authority. If your business is forced to close during the lockdown and you operate from “rateable” premises, you should be able to claim
-£1,334 per month period if your rateable value is less than £15,000 (even if paying 0 rates under small business rate relief.
-£2,000 per month period if your rateable value is between £15,00-£51,000 (even if paying 0 rates under small business rate relief.
-£3,000 per month period if your rateable value is more than £51,000 (even if paying 0 rates under small business rate relief.
Eligibility criteria will largely be dependent on specific local authority