Coronavirus Extension of Furlough Scheme and Additional Restrictions

The Government announced on 31 October 2020 a further lock down for England commencing on 5 November 2020 to 2 December 2020.  Many businesses will be required to close during this period.

We empathise with many businesses where this will have a significant detrimental effect.  We recommend businesses review their cash position and key areas of potential Coronavirus support including:

  1. Job Support Scheme/Furlough Schemes
  2. Self-Employment Grants
  3. Coronavirus Loans
  4. Business Grants

Further information on these four areas of Coronavirus support are available on our website.  This will be updated daily with the latest announcements affecting all nations of the UK.

Scotland has yet to announce further measures to align with England however we will keep you updated with any announcements.

General guidance on the Government restrictions is available at https://www.gov.uk/guidance/new-national-restrictions-from-5-november.

Business Closures

The following businesses and venues are to close:

  • All non-essential retail, including, but not limited to clothing and electronics stores, vehicle showrooms, travel agents, betting shops, auction houses, tailors, car washes, tobacco and vape shops.
  • Indoor and outdoor leisure facilities such as bowling alleys, leisure centres and gyms, sports facilities including swimming pools, golf courses and driving ranges, dance studios, stables and riding centres, soft play facilities, climbing walls and climbing centres, archery and shooting ranges, water and theme parks.
  • Entertainment venues such as theatres, concert halls, cinemas, museums and galleries, casinos, adult gaming centres and arcades, bingo halls, bowling alleys, concert halls, zoos and other animal attractions, botanical gardens.
  • Personal care facilities such as hair, beauty and nail salons, tattoo parlours, spas, massage parlours, body and skin piercing services, non-medical acupuncture, and tanning salons.

Extended Furlough Scheme

The Coronavirus Job Retention Scheme (CJRS) has been extended for a month with employees to receive 80% of their current salary for hours not worked up to a maximum of £2,500.

Key points regarding the extended scheme:

  • Neither the employer nor the employee needs to have previously used the CJRS to make a claim.
  • The scheme will be flexible covering hours not worked. Thus, staff can return to work full or part-time.
  • Employees must have been on an employer’s PAYE payroll by 30 October 2020.
  • The scheme will be inline with the scheme in August 2020 – with the Government to pay 80% of wages up to a maximum of £2,500.
  • Employers required to cover Employers National Insurance and pension contributions (approx. 5% of total employment costs).
  • The scheme will be more generous for employers than it was in October 2020.
  • There will be no gap in eligibility for support between the previously announced end-date of CJRS and this extension.  However, how to claim has not yet been confirmed.

Business Grants

Businesses required to close in England due to restrictions will be eligible for the following grants:

  • 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.

If you have any questions on how the latest announcement affects your business and require support please contact the office on 01228 904 904.

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