New National Restrictions from 5th November – further support announced

We have provided a roundup of the latest information on the new national restrictions, including what they mean for working from home and business closures, why they are being introduced and the financial support available.

The Coronavirus Job Retention Scheme Extended.

Following the Prime Minister’s announcement on further restrictions, the UK-wide Coronavirus Job Retention Scheme will be extended until December.

Coronavirus Job Retention Scheme (CJRS) – also known as the Furlough scheme – will remain open until December, with 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 ended at the weekend. This means the extended furlough scheme is more generous for employers than it was in October.

The Job Support Scheme, which was scheduled to come in on Sunday 1st November, has been postponed until the furlough scheme ends. Additional guidance will be set out shortly. Full guidance can be viewed here.

Business Grants

Businesses required to close in England due to local or national restrictions will be eligible for the following:

  • For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
  • For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
  • For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.

Government increases support for self-employed across the UK

To reflect the recent changes to the furlough scheme, the UK-wide Self-Employment Income Support Scheme (SEISS) will be made more generous – with self-employed individuals receiving 80% of their average trading profits for November.

And to ensure those who need support get it as soon as possible, payments will also be made more quickly with the claims window being brought forward from 14 December to 30 November.

The changes will ensure that self-employed individuals who temporarily cannot carry out their business or have suffered reduced demand due to the outbreak are supported over winter.

As SEISS grants are calculated over three months, the uplift for November to 80 per cent, along with the 40 per cent level of trading profits for December and January, increases the total level of the third grant to 55 per cent of trading profits. The maximum grant will increase to £5,160. The full guidance can be viewed here.

The Bounce Back Loan scheme has been extended until January 31st.

If you already have a Bounce Back Loan but didn’t take out the maximum amount available you can now top that up to the 50k limit.

Full details on the Bounce Back Loan can be viewed here.

Full details on the Coronavirus Business Interruption Loan Scheme can be viewed here.

Mortgage Holidays

Mortgage payment holidays will no longer end this month. Borrowers who have been impacted by coronavirus and have not yet had a mortgage payment holiday will be entitled to a six month holiday, and those that have already started a mortgage payment holiday will be able to top up to six months.

Please contact a member of the team to discuss the support options available to you.