Coronavirus Support Update

With so many initiatives transitioning it is time for another round up of updates on the available help.

Job Retention Scheme / Furloughing

Since last time of writing a raft of changes to the scheme have been announced:

  • Scheme End Date – the end date of the scheme will be 31st October.
  • Putting new employees on furlough – although existing employees can continue on the scheme until end of October no new employees may now be added.
  • Flexible Furlough – from 1st July, employees will be able to be partly on furlough and partly at work. This is a change as prior to this date employees on furlough were prohibited to doing any work for their employer. There is no minimum or maximum amount of work the employee must do. The Government will pay up to 80% of the salary for the proportion of work that the employee is not required to work.
  • Tapering of financial support – From 1st Aug the Government is tapering the amount employers can claim. The tapering changes month by month and from July to Oct and is set out below:
 JulyAugustSeptemberOctober
Government contribution: employer NICs and pension contributionsYesNo No No
Government contribution: wages80% up to £2,50080% up to £2,50070% up to £2,187.5060% up to £1,875
Employer contribution: employer NICs and pension contributionsNoYesYesYes
Employer contribution: wages--10% up to £312.5020% up to £625

In light of the above, we predict many of you will want to make changes to the arrangements you currently have in place. If there are changes to make, please email Joanna well in advance of payroll date.

Self Employed Income Support Scheme

Many of you have already received the Government’s Grant for Sole Traders and Partnerships. As with Job Retention Scheme, the Self Employed Income Support Scheme has been extended.

As it stands individuals can make a claim for up to 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. This grant is only now open for applications until 13th July so if you have been putting off applying, there is not much time left.

In addition to the existing grant a second grant has been offered. This will open in August. The second grant is less generous but still offers 70% of average monthly trading profits. Again this is paid in one lump sum equivalent to three months profits and capped at £6,570.

Bounce Back Loans

Many have been now received these loans and mostly feedback has been that they are extremely easy to access.

The scheme is penciled to close on 4th Nov but the Government has indicated it may extend the scheme.

Local Authority Discretionary Grants

Although the Government has stepped in to support many businesses financially, there are sadly some who do not qualify for much or any support. For these businesses the Government made available funds for Local Authorities to provide discretionary grants.

The criteria for these grants were set out in June by Government here: https://www.gov.uk/guidance/apply-for-the-coronavirus-local-authority-discretionary-grants-fund

Each local authority has their own grant application with individual criteria.  

Lambeth Hardship Fund
Southwark Hardship Fund
Lewisham Small Business Support Fund

Re-opening for Business

Many of us will be making plans for re-opening for business at this time, which comes with its own challenges. We remind you of support we signposted in our last newsletter:

Staying in touch

We understand that whilst lockdown is easing, the difficulties for businesses is far from over. We remain committed to supporting you through this time.

If you would like to talk through plans or cash flow, please let us know and we will arrange a call.

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