Changes to the Coronavirus Job Retention Scheme (CJRS)
Government guidance on calculating how much you have to pay your furloughed employees for hours on furlough and how much you can claim back has been updated with new maximum wage tables and claim dates.
Find examples to help you calculate your employees’ wages
Check examples to help you calculate your employee’s wages, National Insurance contributions and pension contributions if you’re claiming through the Coronavirus Job Retention Scheme.
Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme
The Section on employee transfers under TUPE and on a change in ownership has been updated.
Steps to take before calculating your claim
The section about employee reference dates added and changes made throughout the page to include employee reference dates.
Penalties for not telling HMRC about CJRS overpayments – CC/FS48.
If you have received a grant but were not eligible or you have been overpaid, find out what penalties you may have to pay if you do not tell HMRC.
Self-Employment Income Support Scheme (SEISS) Update
This guidance has been updated with information about the fourth SEISS grant. The online service to claim the fourth grant will be available from late April 2021. If you are eligible based on your tax returns, HMRC will contact you in mid-April to give you a date that you can make your claim from. It will be given to you either by email, letter or within the online service. You must make your claim on or before 1 June 2021.
How HMRC works out trading profits and non-trading income for the SEISS
HMRC look at your trading profits and non-trading income on your Self-Assessment tax returns to check if you meet the eligibility criteria for the fourth grant. They also use your average trading profits to work out how much grant you will get.
If you need help in claiming the fourth SEISS grant please contact us. We have access to accurate calculators to work out your likely claim amount.
Recovery Loan Scheme update
The Recovery Loan Scheme supports access to finance for UK businesses as they grow and recover from the disruption of the COVID-19 pandemic.
Up to £10 million is available per business. The actual amount offered, and the terms are at the discretion of participating lenders.
The government guarantees 80% of the finance to the lender. As the borrower, you are always 100% liable for the debt.
The scheme is open until 31 December 2021, subject to review.
Loans are available through a network of accredited lenders, listed on the British Business Bank’s website.
You can apply for a loan if your business:
- is trading in the UK
You need to show that your business:
- would be viable were it not for the pandemic
- has been adversely impacted by the pandemic
- is not in collective insolvency proceedings (unless your business is in scope of the Northern Ireland Protocol in which case different eligibility rules may apply)
Business that received support under the earlier COVID-19 guaranteed loan schemes are still eligible to access finance under this scheme if they meet all other eligibility criteria.
Who cannot apply
Businesses from any sector can apply, except:
- banks, building societies, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
What you can get
- term loans or overdrafts of between £25,001 and £10 million per business
- invoice or asset finance of between £1,000 and £10 million per business
No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.
How long the loan is for
The maximum length of the facility depends on the type of finance you apply for and will be:
- up to 3 years for overdrafts and invoice finance facilities
- up to 6 years for loans and asset finance facilities
How to apply
Find a lender accredited to offer Recovery Loans from the list on the British Business Bank website: Recovery Loan Scheme: current accredited lenders – British Business Bank (british-business-bank.co.uk)
Contact us to discuss the scheme, consider funding requirements, and assist with information requirements.
Financial support for businesses during coronavirus (COVID-19)
The website outlining what financial support you can get for your business has also been updated. This helps businesses find out how to access the support that has been made available, who is eligible, when the schemes open and how to apply.
Here are the links to the available government schemes:
- Coronavirus Job Retention Scheme: Coronavirus Job Retention Scheme – GOV.UK (www.gov.uk)
- Claim back Statutory Sick Pay paid to employees due to coronavirus: Check if you can claim back Statutory Sick Pay paid to employees due to coronavirus (COVID-19) – GOV.UK (www.gov.uk)
- Pay VAT deferred: Pay VAT deferred due to coronavirus (COVID-19) – GOV.UK (www.gov.uk)
- Making your Self-Assessment payments including Class 2 National Insurance contributions: Making your Self Assessment payments including Class 2 National Insurance contributions – GOV.UK (www.gov.uk)
- If you cannot pay your tax bill on time: If you cannot pay your tax bill on time – GOV.UK (www.gov.uk)
- Retail, hospitality or leisure business eligibility for business rates relief (England): Check if your retail, hospitality or leisure business is eligible for business rates relief due to coronavirus (COVID-19) – GOV.UK (www.gov.uk)
- Check if your nursery is eligible for business rates relief (England): Check if your nursery is eligible for business rates relief due to coronavirus (COVID-19) – GOV.UK (www.gov.uk)
- Self-Employment Income Support Scheme: Check if you can claim a grant through the Self-Employment Income Support Scheme – GOV.UK (www.gov.uk)
- Corporate Financing Facility (larger businesses): Apply for the COVID-19 Corporate Financing Facility – GOV.UK (www.gov.uk)