We have been a little slow in sending out this update, it was on purpose as there have been so many changes to the support packages recently, we did not want to bombard you!
Job Support Scheme
The JSS will replace the CJRS and applies from 1st November, although the first claims cannot be made until 8th December. There are two parts to the scheme, the Open scheme and Closed scheme.
JSS Open
This is for businesses that are open and deemed safe but have seen a reduced demand and turnover due to the restrictions in place. Employees are required to work at least 20% of their normal hours and the employer needs to pay the usual wage for those hours worked, for the hours not worked the employee will receive 66.67% of the usual wage made up of 5% employer contribution (up to £125 per month) and 61.67% from the government (up to £1,541.75 per month).
JSS Closed
This is for businesses that are legally required to close due to any further restrictions in place. In this case the government will cover two thirds of an employee’s usual wage / salary to a maximum of £2,083.33 per month.
The scheme is open for 6 months with a review due in January, as restrictions are forever changing then employees can move in and out of the schemes as necessary, with a minimum of 7 days to each change. Employees who were not previously furloughed can be placed on the scheme providing they were an employee by 23rd September and had been submitted on an RTI submission prior to this date.
As with furlough, employers must agree reduced hours with their employees in advance and if necessary, put an amendment in their contract to support this.
Self-Employment Income Support Scheme
The government have increased the amount of the 2 further grants available to the Self Employed to 40% instead of 20%, up to a maximum of £3,750 per grant.
Cash Grants
For businesses in the hospitality and leisure industries are eligible for business grants from their local authorities, the amount of these are dependent on which tier you are in and what your rateable value is for business rates.
Tier 1 - No grants available
Tier 2 - Rateable value of £15k or under, grants of £934 per month
- Rateable value above £15k but below £51k, grants of £1,400 per month
- Rateable value of £51k or above, grants of £2,100 per month
Tier 3 - For all businesses that are legally required to close, grants of up to £3,000 per month
The grants are administered by local authorities, so we advise clients to check their websites to find out how to apply for the grants as each local authority is likely to be different. We will support you with any financial information required of course.
Dunnell Accounting
We have a new team member! Debra Collier joined us earlier in the month and has been head down immersing herself in all things DA, I am sure you will all be speaking with her soon. So, the team is complete for now and we look forward to hopefully seeing you soon.
If you have any questions or require any further clarification on the support measures, we have mentioned here then please do call the office on 0203 6211662 and speak to one of the team.
Very Best
The DA Team x