As a Business Owner and employer I’m sure that you’ll agree that with all of the changes that the changes the government has to keep making it can make things a little difficult to keep track of.
To try and make things a little easier we have put together some of the things that we think may help you.
Job Support Scheme
If you are in a position where you have bought staff back, but due to the recent restrictions need to drop their hours, then the government will help you as long as you can give them 33% of their normal working hours and that they have been on your payroll on or before 23rd September.
You will continue to pay your employee as normal for the hours they have worked. For the hours not worked, you and the government will each pay a third of their normal wages.
If your employee normally works 18 hours and earn £10 per hour and they are now only working 9 hours
You will pay £90 (hours worked) + £30 (a third of lost hours)
Government will pay you £30 (a third of lost hours)
So your employee will only end up being £30 short
All National Insurance and Pension contributions will still need to be paid by you..
This support scheme is available from 1st November.
Expansion of Job Support Scheme – If your Business is legally required to close as a direct result of coronavirus restrictions
If your business is instructed to shut due to further restrictions you could receive a contribution to help pay the wages of your employees. You can also claim if you have been instructed to provide delivery and collection only services from your premises.
The Government will pay two thirds of employees’ usual wages up to a maximum of £2,100 per month. You will not be required to contribute towards wages but will need to cover National insurance and pension contributions.
This is available for 6 months from 1st November with payment of grants in arrears from early December.
Job Retention Bonus
As an employer, if you have furloughed any employee and they are still working for you on 31st January 2021 then you may be eligible for the Job Retention Bonus.
This is a one off payment of £1000 for each employee that you have furloughed and kept in continuous employment.
To be eligible, employees must earn at least £1,560 between 6 November 2020 and 5 February 2021 and have received earnings in the November, December and January tax months.
Employees must also not be serving a contractual or statutory notice period for you on 31 January 2021.
You will be able to claim the bonus from 15 February until 31 March, once you have submitted PAYE information for the period up to 5 February 2021. Further guidance is due by the end of January.
You can still claim the Job Retention Bonus if you make a claim for the same employees through the Job Support Scheme, as long as you meet the eligibility criteria for both.
Coronavirus Job Retention Scheme – changes from 1 October
From 1 October, the amount HMRC contributed reduced to 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work.
You will continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. You will need to fund the extra 20% yourself.
You will also continue to pay your furloughed employees’ National Insurance and pension contributions.
The scheme closes on 31 October and you will need to make any final claims on or before 30 November. You will not be able to submit or add to any claims after 30 November.
VAT Deferral New Payment Scheme
If you deferred VAT payments that were due between 20 March and 30 June 2020, then these payments need to be made to HMRC by 31 March 2021.
You can use the VAT Deferral New Payment Scheme to spread these payments over equal instalments up to 31 March 2022. Alternatively, you can make payments as normal by 31 March 2021, or make Time To Pay arrangements with HMRC if you need more tailored support.
We hope that this goes a little way towards clearing things up for you however we are very aware that this help could all change again before we know it. We’re trying our best to keep you up to date with the ever changing support so keep an eye out for our blogs.
Please also remember that if you would rather talk it through with somebody then we are always here to help.