Business news update – We’re here to support you and your business!
Last week, the Government has made a U-turn on A levels and this quite rightly dominated the news. It is also changing the way public health in England is governed. This month has seen the removal of France and other close European countries from the “Travel Corridor”. This left thousands of holiday makers rushing to get back from the UK before they had to take self-isolation measures.
Our role is not to comment on the politics surrounding Covid-19 but to help and support our clients with business news and that is what we will focus on in this newsletter.
Statistics released this week show over 9.6 million employees have been on Furlough since March and currently there are 1.2 million Furloughed in August. This amounts to over £34.7billion in grants from the Coronavirus Job Retention scheme which ends in October.
Also in the news is the Self-employed income support scheme (SEISS) as the second grant is now available. The first grant was claimed by 2.7 million people mounting to £7.8billion. Details of the second claim are outlined below. Whilst we cannot claim this for you, please contact us if you have any questions or need more information.
What you need to do from 1 September
- From 1 September CJRS will pay 70% of usual wages up to a cap of £2,187.50 per month for the hours furloughed employees do not work.
- You will still need to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. You will need to fund the difference between this and the CJRS grant yourself.
- The caps are proportional to the hours not worked. For example, if your employee is furloughed for half their usual hours in September, you are entitled to claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).
- In addition, you will continue to have to pay furloughed employees’ National Insurance and pension contributions from your own funds.
Make sure your data is right!
It is important that you provide all the data HMRC need to process your claim. Payment of your grant may be at risk or delayed if you submit a claim that is incomplete or incorrect. We want to help you get this right! We have an accurate claim calculator, which we can let you have at no cost, please talk to us if you need any help.
SEISS: Self Employed can benefit from a second stage grant
Self-employed people whose livelihoods have been affected by coronavirus are now able to claim a second payment of up to £6,570.
Those eligible will be able to receive a second and final grant worth 70% of their average monthly trading profits. The money should arrive in bank accounts within six working days of making a claim.
Anyone whose self-employed business has been adversely affected by coronavirus since 14 July is eligible for the scheme. Click here for more information.
New grants to boost recovery of small businesses
Thousands of smaller businesses in England are set to benefit from £20 million of new government funding. Small and medium sized businesses will have access to grants of between £1,000 – £5,000.
The grants can help you purchase new technology and other equipment as well as professional, legal, financial or other advice to help get back on track. The grants are not yet available. But we will provide further details on how to apply for these grants in due course.
CBIL’s and BBL’s
The Coronavirus Business Interruption Loan Scheme (CBIL’s) supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities. The scheme provides the lender with a government-backed guarantee potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.
The closing date for applications is 30th September. Let us know if you need help with your application or the information required.
The Business Bounce Back Loan (BBL) allows small businesses to apply for quick and easy-to access loans of up to £50,000. The government guarantees 100% of the loan. Also, there are no fees or interest to pay for the first 12 months. The closing date for BBL’s is the 4th November.
We hope this information is helpful, we are here to support you! If you would like to receive business news straight into your inbox click here.
Finally, if there is anything you would like to discuss give us a call or drop us an e-mail. We would love to grab a coffee and chat over zoom!