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The new measures come just two weeks after the Chancellor’s Winter Economy Plan, where he announced the Job Support Scheme – billed at the time as a replacement for furlough.
The support available is in a constant state of flux, and it can be difficult to keep up with the new measures, what they mean and how you can benefit from them.
We have put together a simplified overview, but please do get in touch if you would like to have an extended discussion about your own circumstances – our partners are here to support you through these challenging times.
For businesses, from November the government will cover two-thirds of employees’ salaries up to £2,100 a month where coronavirus measures have forced firms to shut by law. This applies to any business that has formally or legally been asked to close for a minimum of seven consecutive days over winter as part of local or national restrictions.
Don’t forget, for an employee to be eligible they must have been on an employer’s PAYE payroll on or before the 23rd of September 2020. That’s the key cut-off date.
Yes, employers or employees that have not previously used the Coronavirus Job Retention Scheme can still claim on the new scheme.
The scheme will begin on the 1st of November and will be available for six months, with a review point in January.
You must use the scheme to cover employees’ wages and pay relevant payroll taxes. The whole of the grant must be used to meet employee costs.
As with previous schemes this grant will not cover Class 1 employer NICs or pension contributions, although these contributions will remain payable by the employer.
Employers will be able to make a claim on a monthly basis online through gov.uk.
Businesses required to close by local lockdowns can also apply for cash grants of up to £3,000 per month. The payments will be taxable, and employers will be required to cover employer national insurance contributions and auto enrolment contributions in full (where applicable).
These grants will be linked to rateable values, with up to £3,000 per month payable every two weeks, compared to the up to £1,500 every three weeks which was available previously. Grants will be available as follows: