Further coronavirus support updates
Whilst there have not been any new major announcements in recent weeks, some more detail has been emerging on the already announced schemes. The main points are included this blog below.
Coronavirus Job Retention Scheme
The official regulations for this scheme, which allows employers to furlough employees and claim back a percentage of their wages, have now been released. These confirm the legal basis of the guidance already issued, including the ability for directors to furlough whilst still undertaking company admin, with a few last-minute tweaks. The full text of the guidance can be found here.
Previously the key date for an employee to be eligible for the scheme was 28 February 2020. This has now been moved to 19 March 2020 to bring in employees who had recently started new jobs. However, it is not enough for an employee to simply have started their job before that date. Their employer must also have made an RTI submission including such employees before 19 March 2020. This means that most monthly paid employees will still not be eligible for furloughing even if they did start before 19 March 2020.
Whilst the main guidance page has not been updated at time of writing, HMRC have confirmed the portal for claims will be up on 20 April 2020. The original timescale for money actually being paid to employers has also been shortened. Money for first claims should now reach an employer’s bank account within 6 days from the claim.
Given the number of claims that will be made once the portal opens, it is likely that HMRC’s systems will struggle to process all claims promptly. Any cash-flow forecasts should factor in a longer delay in receiving this money.
The scheme has now also been extended from 3 months to 4 months, meaning it will now run up to 30 June 2020. Depending on developments this may be extended further.
Rates-based grants
This money has now been supplied to councils and is starting to be paid out to qualifying businesses. £10,000 is available to all businesses with business premises that attract Small Business Rate Relief or Rural Rate Relief. Grants of up to £25,000 are available for those in the hospitality, retail or leisure industries with business premises with rateable value less than £51,000.
There has been some variance across the country in how these grants are being passed on to businesses. Some councils have been contacting people and paying out promptly. Others have invited applications for the grants. A few have made applications available on their websites but have not properly publicised this.
If you believe you are eligible for the grant but have had no contact, you should check your local council’s website. The relevant council will be shown on your rates bill. If you cannot locate this information, then you can find your local council by entering your business postcode here. This will show both your county and district councils. The district council is the relevant site for business rates.
