I do hope you, your family and team members are coping through these very difficult times.

I have tried to summarise below some information from the recent Government announcements and hope it will make more sense then the onslaught we had been subjected to over the last few days.  As for those slides, which seemed to be on a selective basis and whose whole purpose was to frighten the pants off us,  I despair! Apparently they delayed the announcement 3 times,  presumably trying to get the unintelligible slides to fit the TV screen and yet failed miserably!   Scholars of  Greek mythology amongst you will forgive me for  likening the efforts of Messrs Johnson, & Co to those of Sisyphus condemned in Tartarus to an eternity of rolling a boulder uphill then watch it roll down again !.  Now, some of us are waiting for the slides to show the cost to the nation of another nationwide lockdown !  I’m not holding my breath

So, on the  31st October, Boris Johnson announced that the Job Retention Scheme (JRS) will be extended until December due to  a national lockdown in England effective from 5th November until 2nd December, Now we know that the CJRS is going to run until March 2021

Now we know that the CJRS is going to run until March 2021, I think we can probably ignore the JSS. We are awaiting more detail to emerge on the extended version of the scheme for the self-employed, the SEISS During this extension period, the Job Support Scheme (JSS) will be put on hold until after the JRS has officially come to an end. This means that employers cannot make use of the JSS at all until it begins post-JRS even though agreements may have already been made with staff – to put them on the JSS.

Employers  should note that it is not advisable that any such agreement with staff, to have them placed on the JSS, should be used to place them on the extended JRS. This means that a new agreement will need to be made between the employer and any members of staff that they wish to place on the extended JRS.

The Government has decided to return to the original structure of the JRS, with some slight differences. Employers in all parts of the UK (not just England) will be able to place their staff on the JRS and claim 80% of their salary up to a cap of £2,500 per month per employee. The difference is that employers will be asked to contribute National Insurance and Pensions contributions during this period whilst they claim under the JRS.

Flexible furlough is also being extended so that if employees can work some hours out of their usual working hours, they can do so and be put on furlough the rest of the time.

To be eligible now for the extended JRS, employers, and their employees do not need to have used the JRS or been furloughed before; employees need only have been on an employer’s PAYE payroll by 23:59 30th October. This means that the employer must have made a Real Time Information submission to HMRC on or before 30th October.

When it comes to hours unknowingly worked on Sunday 1st November under the JSS, as the Government’s announcement on the JRB extension was made on 31st October, it would have been expected that employers would not have carried out any arrangements on the basis of the JSS. It is therefore unlikely that employers will be able to make any claims for 1st November under the JSS.

The employer  can instead agree with affected staff that those worked hours be classed as flexible furlough, as well as any subsequent working arrangements going forward. Now we know that the CJRS is going to run until March 2021, Further clarification is needed on the extended JRS so employers will need to wait for further government updates before they can know what their position is on this matter.

Below is a useful summary of what monies are still available from the government and deadlines, if you qualify go to the bank portal and apply as before

COVID-19: different types of loan funding. All loan funding is repayable.

The following loan funds have been announced during the ongoing Coronavirus pandemic.

· Microbusiness ‘Bounce back’ loans: open until 31 January 2021

· Coronavirus Business Interruption Loan Scheme: open until 31 January 2021

· COVID-19 Corporate Financing Facility: closed on 9 October 2020

· Future Fund convertible loan scheme: open until 31 January 2021

Microbusiness ‘Bounce back’ loans

·  Loan available to UK based small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.

·  The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.

·  The scheme is open to applications until 31 January 2021.

·  The business must have been

o  established before 1 March 2020

o  adversely impacted by the coronavirus

o  not an ‘undertaking in difficulty’ on 31 December 2019.

o  not already claiming under the Coronavirus Business Interruption Loan Scheme or Corporate Financing Facility

Coronavirus Business Interruption Loan Scheme

·   Applies to UK based medium and large sized businesses with a turnover of over £45 million

·   The government guarantees 80% of the finance to the lender.

·   The scheme is open to applications until 31 January 2021.

·   The same criteria and rules apply as for the SME CBILS. Banks, building societies, insurers and reinsurers (but not insurance brokers) and public-sector organisations, including state-funded primary and secondary schools are all excluded from the scheme.

As we chalk off yet another extraordinary week in the history of humanity, do stay positive, hopeful and safewe have come together a long way and we will continue to cover your back, we are easy to contact 01892 552696 or www.shaikhandcoaccountants.com

CategoryCovid-19
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