October 9th, 2020 / Insight posted in Articles, Tax

Chancellor announces support for businesses forced to close

With new lockdown measures looming the Chancellor has announced an extension of the Job Support Scheme and grants to businesses who are forced to close.

Job Support Scheme Extension

Businesses whose premises are legally required to shut as part of local or national lockdown restrictions will receive grants to pay the wages of staff who cannot work. The grants will pay 67% of each employees’ salary, capped at £2,100 a month per employee.

The grant will not cover the employer’s NI or pension contributions which remain payable by the employer.

The minimum period for a claim is 7 days throughout which the employee cannot work. This extension of the Job Support Scheme will run for 6 months from 1 November so this still leaves a problem for those employees who do not qualify for the tail end of the furlough scheme.

Grants to Businesses

The government will increase the grants it pays to businesses in England shut in local lockdowns as a recognition that they will still have to meet their on-going fixed costs.

These grants will be linked to rateable values as follows:

Small businesses with a rateable value of or below £15,000  – £1,300 per month

Medium sized businesses with a rateable value between £15,000 and £51,000 –  £2,000 per month; and

Larger businesses can claim £3,000 per month.

 

For those businesses not subject to lockdown restrictions, the measures already announced such as the Job Support Scheme and Job Retention Bonus remain unchanged.