For many of us it feels a bit like déjà vu.
Here we are facing another national lockdown and with it closure of all businesses except for those providing essential goods, a ban on mixing with other households and renewed fears about the health and wellbeing of our friends and family.
The difference this time round is that we are no longer new to the scenario – we know what to expect. And on top of that, we have been reassured that there will be economic support available to see us through.
So let’s look at this in more detail.
Furlough and finances
This is the big one. The Coronavirus Job Retention Scheme has been extended for a month with employees receiving 80% of their current salary for hours not worked.
This means the extended furlough scheme is more generous for employers than it was in October.
Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme and businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time.
The Job Support Scheme, which was scheduled to come in on Sunday 1st November, has been postponed until the furlough scheme ends.
Who is eligible?
This extended Job Retention Scheme will operate as the previous scheme did, with businesses being paid upfront to cover wages costs.
The level of the grant will mirror levels available under the CJRS in August, so the government will pay 80% of wages up to a cap of £2,500 and employers will pay employer National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work.
As under the current CJRS, flexible furloughing will be allowed in addition to full-time furloughing.
Further details, including how to claim this extended support through an updated claims service, will be provided shortly.
Business Grants
In addition, business premises forced to close in England are to receive grants worth up to £3,000 per month under the Local Restrictions Support Grant.
Businesses required to close in England due to 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.
On top of this, £1.1bn is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly.
What about homeowners?
Mortgage payment holidays will no longer end as of October 31st.
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 without this being recorded on their credit file.
The FCA will announce further information soon.
How we can help
If you are new to furlough – or an old hat – we are here to help you manage the claim and the payments to employees. We can also advise you on how to apply for any business grants to get you through the winter.
None of us know the impact this second wave will have on our country – let alone our individual businesses.
But here at KBL Accounts we would like to help you as much as we can. If you want to talk through your business finances in more detail with a member of our team, we would be happy to offer you the best advice. We will do our best to help you get through this lockdown and keep your business afloat.