On Sunday 31st October 2020 the Government announced a number of updates to existing economic support measures. The full details of these measures are reported HERE.
In summary of the main points:
Job Support Scheme (JSS)
The JSS scheduled to be implemented on 1st November 2020 will now be delayed (by at least another month) until the Coronavirus Job Retention Scheme is closed. The terms of this scheme will otherwise be the same as those outlined originally in our article at the end of last week (https://www.qaccounting.com/updates-to-the-job-support-scheme/ ).
Coronavirus Job Retention Scheme (CJRS)
The Coronavirus Job Retention Scheme will be extended (by at least another month). Although it is probably more accurate to say that this should be classed as a new scheme as the eligibility requirements for joining the scheme have changed and now require a payroll RTI submission to have been issued before 30th October 2020, and the employee must be furloughed for at least 7 days. This means that clients who maybe didn’t qualify for the original scheme by virtue of the original RTI deadline of 19th March 2020, may now qualify for the new scheme.
Otherwise the requirements of the scheme are similar to the original scheme:
- To be eligible for CJRS an employer must agree with the employee that they are a ‘furloughed worker’.
- Employees must be notified that they have been furloughed.
- Employees must be furloughed for a minimum of 7 days.
- You can claim 80% of wages up to a maximum of £2,500 per month per furloughed employee.
- A separate claim is needed for each PAYE scheme.
- You can only claim for furloughed employees that were on your PAYE payroll on or before 30th October 2020.
- An RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 30th October 2020.
- You must have a UK bank account.
Mortgage Payment Holidays
Similar to the other schemes the availability of Mortgage Payment Holidays has been extended by another month.
For those businesses that are required to close (in England) due to Government restrictions, grants may be available based on the rateable value of these business premises:
- For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
- For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
- For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.
Preparing for BREXIT
Many of our clients have received communications from HMRC over the last year to assist them to prepare for BREXIT. However as this is a complex and new area, this article is designed to further help you to assess how these changes may impact both you and your business.
Updates to the Job Support Scheme
The Government has published detailed information about the scheme HERE.
Accounting for Limited Company Property Investments
It can be a complex decision for clients when it comes to determining how best to utilise existing Contractor Limited Company funds in a Property Investment Company