COVID Support Summary

There is so much information out there and the government have made so many changes to their support packages, it’s no wonder many people are confused and unclear as to what support is available to them, not to mention what rules apply.

Here is our quick-fire round-up of some of the main support schemes available (subject to conditions);

For employers;

• Coronavirus Job Retention Scheme, also known as the furlough scheme and including the flexible furlough scheme, which is ending on 31 October 2020.

• Job Retention Bonus of £1000 available for each employee previously furloughed that you bring back to work and who are still on payroll at the end of January 2021.

• Job Support Scheme with come in with effect from November whereby the government will pay a third of the wages, capped at £697.92, relating to unworked hours for those returning to work on a part-time basis.

• Opportunities to recruit young workers under apprenticeship schemes, including the Kickstart Scheme.

• Statutory Sick Pay reimbursed from day one for workers off sick with the virus capped at £95.85 per week per employee.

• Additional support from local authorities for businesses forced to closed under further imposed lockdown conditions.

For the self-employed

• The Self-Employment Income Support Scheme (SEISS) is still available for those whose main income is from self-employment with average earnings under £50k in 2018/19 (and/or in prior 2 years), who are still trading but impacted by coronavirus. The second payment window is still open and must be claimed by 19 October 2020.

• The SEISS Grant Extension will come into effect from November 2020 and run until April 2021, on the same basis as the above. It will be paid in two installments, up to January 2021 based on 20% of average monthly trading profits but capped at £1,875, and then a second grant up to April 2021 subject to further government review.

For businesses in retail and hospitality sector

• Business rate relief available for those in retail, hospitality and leisure until 31 March 2021 meaning no business rates are payable until this date.

• Business rate grant (now ended), but may depend on local authority as should have been paid by 30 September 2020.

• VAT reduction to 5% for the hospitality and travel sector extended to 31 March 2021.

For individuals

• New Style Jobseeker’s Allowance is available for those seeking work and who have been recently employed and paying Class 1 NIC.

• New Style Employment and Support Allowance (ESA) is available for those who are unable to work due to illness or disability. Both Class 1 and 2 NIC contributions count for ESA so it is available to the recently employed and self-employed, payable from day one of sickness, including those required to self-isolate because of COVID-19.

• Universal Credit is available to those with little or no earnings to help with living costs, aimed at replacing Income Support, Housing Benefit, JSA and Working and Child Tax Credits.

• A potential to apply for reduced council tax for those with low income.

For finance and cashflow

• Coronavirus Business Interruption Loan Scheme (CBILS) conditions improved now extending loans term to 10 years with enhanced government guarantee.

• Extended Bounce Back Loan repayment period expanded to allow repayment over 10 years and extended application period so still time to apply, as well as offering repayment holidays and some interest-only payments.

• Large Business Interruption Loan Scheme available for large corporate borrowing.

• Extension to the VAT deferral support allowing the VAT deferred to be spread over 11 months interest-free from March 2021. It must be applied for.

• Ability to spread income tax payments due on January 2021 over 12 months. If the liability is under £30k there will be an online self-assessment style process.

Wildcards

• Local authority Discretionary Grants, which could be for the arts, for those working from home or other and dependent on local borough funds so not set in stone

• Other private and public funded grants - terms applicable as per the organisation.

• Eat out to help scheme throughout August has been extended by many businesses still offering a similar saving from their own pocket

• If you have kids and you (and your partner’s) income has dropped below £60k, you may be able to go back to claiming child benefit even if you have previously disclaimed it

• A £500 one-off payment will be available for those on low income who are required by NHS Test and Trace to remain at home.

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FUSE is an independent Chartered Certified firm of accountants and tax advisors based in Highgate Village, North London. We provide a dynamic range of services to clients working in property, media, entertainment and professional services. Our clients vary in size from self employed sole traders, small enterprises and medium size businesses. We believe that comprehensive financial planning and sound business financial advice are the keys to growth and profitability.