Following the Chancellors announcements today, 5th November 2020, there have been further updates to the support offered for the Coronavirus job retention scheme and Self Employed Income Support Scheme, these are both detailed below.
In addition, there has been an update in relation to the sale of takeaway alcohol from the advice in our last newsletter, more details below.
Also, due to the new lockdown, we have had to make some changes to the office, more details below.
Please bear in mind this guidance is constantly changing as new announcements are made, therefore please check the most recent guidance to ensure it is the most up to date, this can be found here: https://www.gov.uk/coronavirus
Coronavirus Job Retention Scheme
Following the announcement that the job retention scheme would be extended until December 2020, there has now been a further announcement that the scheme is to be further extended with the scheme remaining open until 31st March 2021.
For the period running to January 2021, employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. The £2,500 cap is proportional to the hours not worked.
Please note, the scheme will be reviewed in January 2021 and the government will assess based on the economic climate if employers will be asked to contribute more.
key aspects to note are that:
– Employers do not need to have used the CJRS previously.
– Employees do not need to have been furloughed under the CJRS previously.
– Employers across the UK can claim, whether their businesses are open or closed.
Employee eligibility criteria
Employers can claim for employees who were employed and on their PAYE payroll on 30 October 2020. The employer must have made a PAYE Real Time Information (RTI) submission to HMRC between the 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.
What employers can claim
Employers will have flexibility to use the scheme for employees for any amount of time or shift pattern, furloughing employees on either a full-time or part-time basis, and will be able to vary the hours worked in agreement with the employee.
Employer contributions during the CJRS extension until January 2020 will be the same as in August 2020. This means that for hours not worked by their employee, employers will only be asked to cover National Insurance and employer pension contributions.
For employees who were previously eligible for CJRS, ie an employee on an RTI submission on or before 19th March 2020, the calculation rules will remain the same. The existing CJRS calculation of 80% of usual wages and of usual hours based on March 2020 payrolls willl apply to all employees who were eligible under CJRS even if a claim was not made in respect of that employee under CJRS to 31 October 2020.
If an employee was not previously eligible for CJRS, ie employees submitted on an RTI submission for the first time between 20th March 2020 to 30th October 2020, 80% of wages must be calculated for employees:
– on a fixed salary – 80% of the wages payable in the last pay period ending on or before 30 October 2020
– whose pay varies – 80% of the average payable between (these dates are inclusive) the start date of their employment or 6 April 2020 (whichever is later) and the day before their CJRS extension furlough periods begins.
Detailed guidance will be issued on 10th November 2020 and employers will be able to claim from 8am on Wednesday 11th November 2020 for claims from 1st November 2020.
Claims relating to November 2020 must be made by 14th December 2020. Claims relating to each subsequent month should be submitted by day 14 of the following month, to ensure prompt claims following the end of the month which is the subject of the claim. The closing date for claims up to and including 31st October 2020 remains 30th November 2020.
Interaction with other Coronavirus Job Schemes
The launch of the Job Support Scheme has been postponed.
The Job Retention Bonus will now not be paid in February 2021 and a retention incentive maybe introduced at the appropriate time as furlough has now been extended to 31st March 2021.
Self-Employment Income Support Scheme grant extension
Following the announcement that the Self-Employment Income Support Scheme grant extension would be extended, there has now been a further announcement that the scheme is to be further extended.
The third grant will cover a 3 month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant calculated at 80% of 3 months average monthly trading profits, paid out in a single instalment and capped at £7,500 in total. This is an increase from the previously announced amount of 55%.
The online service for the next grant will be available from 30 November 2020.
There has been no further changes to the eligibility criteria and this remains that self-employed individuals, including members of partnerships, must:
– have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
– declare that they intend to continue to trade and either:
a – are currently actively trading but are impacted by reduced demand due to coronavirus
b – were previously trading but are temporarily unable to do so due to coronavirus
The fourth grant covering February 2021 to April 2021 will remain under review, with the level of grant to be announced in the coming months.
Business Closure Update
In the initial announcement, the sale of alcohol for off premises consumption was banned, however in the official legislation this is not the case and the sale of alcohol will be allowed under certain restrictions similar to other non-essential retail:
– Customers must order via a website, phone or text message.
– Pre-ordered alcohol and other items can be collected by customers as long as they do not enter the premises
– Deliveries are also allowed.
Moffatts Offices Update
Due to the new lockdown brought into effect today, 5th November 2020, to ensure the safety of our staff, we will again be working from home, however, at most times a member of staff will be at the Manchester site during office hours to enable records to be dropped off or collected from the office.
The phone system will continue as normal, therefore please call the office number, if you have any problems getting through, please send an email to the partner or email@example.com and your call can be returned.
If you wish to drop off or collect records, first please call the office so we can advise of the procedure and arrange a suitable time to ensure that a member staff will be available.
On arrival at the office, we have arranged a drop off point in the carpark, call the office again on arrival to attract attention and a staff member will come out to the drop off point. Please do not leave records unattended.
Face to face client meetings are by appointment only.
The Bolton office remains closed for the timebeing.
Please be assured we do remain fully operational during this time and would encourage clients who have not yet sent in accounts or tax return records to do so without delay.