Support for business
We recommend that businesses use the Government's support finder on a regular basis to find out what support is available.
Job Support Scheme
The Job Support Scheme will open on 1 November 2020 and run for 6 months. It is intended to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19 with the aim of helping to keep employees attached to the workforce.
It will ensure employees will keep their job by continuing to pay its employee for time worked but the cost of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction).
The Government will pay a third of hours not worked up to a cap, with the employer also contributing a third. This will ensure employees earn a minimum of 77 per cent of their normal wages, where the Government contribution has not been capped.
Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
Business will be able to secure a subsidy towards the salary costs of their employees who otherwise would have been laid off. Called the Coronavirus Job Retention Scheme employers will be able to secure up to 80% of the cost of an employee's cost up to a maximum of £2500 per month per employee until end of May 2020.
HMRC will deliver this wage subsidy and as of 15 April 2020 there have been updates on payroll date, pension contributions and eligibility.
Businesses can check if they are eligible and how much they can claim to cover wages for employees on temporary leave ('furlough') due to coronavirus (COVID-19) on the Government's Job Retention Scheme web page.
The Cornonvirus Business Interruption Scheme has been extended. SME's with annual turnover of up to £45m can access loans, overdrafts, invoice finance and asset finance of up to £5 million for up to 6 years. All viable SME's now eligible.
Small-and medium-sized businesses and employers will be able to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. They will be able to reclaim 2 weeks' SSP per eligible employee. There will be no need to provide a Doctors Fit Note but employers need to maintain records of staff absences and payments of SSP.
No detailed arrangements are yet available on how the repayment mechanism will work and how to apply.