Inca COVID-19 Update: New Support for Businesses forced to Close as Part of Lockdown Restrictions
13th October 2020
Welcome to our latest COVID-19 update.
New Support for Businesses forced to Close as Part of Lockdown Restriction
Large parts of the UK are subject to local restrictions, and more are likely to follow as winter approaches and a second coronavirus spike threatens. The Chancellor has announced new measures to provide support for businesses forced to close temporarily due to a local or national lockdown.
Job Support Scheme Expanded
In a variation on the furlough scheme, employees working for businesses forced to shut by law because of coronavirus restrictions will get two-thirds of their wages paid by the government.
- The scheme starts on 1st November & will be reviewed in January 2021.
- Employees must be furloughed for periods of at least seven consecutive days.
- Employers must pay employees 66% of their wages upfront – plus any employer’s NIC & the minimum employer’s pension contributions due.
- Employers can claim back the cost of wages (capped at £2,100 per month) – but not NIC or pension contributions.
- To be eligible, an employee must have been on their employer’s payroll before 23rd September 2020.
Local Lockdown Grants Increased
In addition to expanding the Job Support Scheme, the government is making the Local Restrictions Support Grant scheme more generous
- Businesses will receive up to £3,000 per month, rather than up to £1,500 per three weeks & will be eligible for payment after only two weeks of closure.
- Properties with a rateable value of £15,000 or under will receive grants of £667 per two weeks of closure.
- Properties with a rateable value of over £15,000 & less than £51,000 will receive grants of £1,000 per two weeks of closure.
- Properties with a rateable value of £51,000 or over will receive grants of £1500 per two weeks of closure.
- The government is also extending the scheme to include businesses which have been forced to close on a national rather than a local basis.
Remember, the Inca team are here to provide help and advice on any aspect of your business finances. Call us for an informal chat, and we’ll do our very best to assist you.
The Inca Team
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