Today, the chancellor has announced further measures for businesses forced to close down by the Government.
This is a planned expansion of the Job Support Scheme outlined in September, which is designed to assist employees and employers who see working hours cut due to reduced demand.
For businesses forced to close due to Government restrictions, 67% of an employees salary will be paid as a grant by the government. This will be capped at £2,100 per month.
The scheme will come into force on November 1st, and employees must be off work for a minimum of 7 days to be eligible.
The payment will be made in arrears via a HMRC claims service that will be available from early December.
Employers will not be required to contribute towards wages and will only be asked to cover national insurance and pension contributions.
The government is also increasing the cash grants to businesses in England shut in local lockdowns to support with fixed costs.
Businesses forced to close will also receive a grant from the Government of up to £3,000 a month based on the rateable value of thier property.
Small businesses with a rateable value of or below £15,000 can now claim £1,300 per month;
Medium sized businesses with a rateable value between £15,000 and £51,000 can claim £2,000 per month;
and larger businesses can claim £3,000
These schemes will cover businesses that, as a result of restrictions set by one or more of the four governments in the UK, are legally required to close their premises.
This includes businesses that are required to provide only delivery and collection services from their premises, or food and drink outdoors from their premises.
To be eligible employees must be employed and an RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 23 September.
As more detail on the above measures emerges we will continue to keep you updated.
Based in Woking, Hamlyns is a different kind of Chartered Accountants. We provide accounts, audit and tax services to a number of businesses and individuals across Surrey and the UK.