These are things we have found out about support options announced already, there will be continual revisions as government formulate details.
VAT payment deferral:
- Deferred payments now have to be paid by 31st March 2021 not 31st December 2020 as previously announced.
- Payments would seem to be deferred for VAT returns ending 29th February, 31st March and 30th April 2020.
Grants for Business rates payers
- £10,000 for all business/charities receiving Small Business Rates Relief (check your latest rates bill usually under £15,000 pa)
- £25,000 for Retail, Hospitality and Leisure businesses with rateable values between £15,000 and £51,000
are administered by your local authority – who will be in touch.
The problem of course is that they probably only have your business address and most of you aren’t going into work. In Brighton and Hove you can contact the council by sending an email to firstname.lastname@example.org with the name of your business and a contact email address.
So, check your local authority website for similar contact details.
How the monthly earnings are calculated
For employees who have been employed (or engaged by an employment business in the case of agency workers) for a full year, employers will claim for the higher of either:
- the amount earned in the same month last year
- an average of monthly earnings from the last year
For employees who have been employed for less than a year, employers will claim for an average of monthly earnings since they started work. The same arrangements apply if monthly pay varies such as for zero-hour contracts.
For employees who started work in February 2020, the employer will pro-rata earnings from that month.
Bonuses, commissions and fees are not included as part of monthly earnings.
The maximum grant will be calculated per employee and is the lower of:
- • 80% of ‘an employee’s regular wage’ and
- • £2,500 per month.
Plus the associated employers’ national insurance contributions (NIC) on this amount and the minimum automatic enrolment employer pension contributions on that wage.
Therefore this gives a maximum cap of £2,500 +£245 (employers’ NIC) + £59 (auto- enrolled pension contribution) = £2,804 of total possible grant that can be applied for per employee per month.
While you’re on furlough
Once on furlough an employee is not be able to work for their employer, but they can undertake training or volunteer subject to public health guidance, as long as they’re not:
- making money for the employer
- providing services to the employer
If workers are required to for example, complete training courses whilst they are furloughed, then they must be paid at least the NLW/NMW for the time spent training, even if this is more than the 80% of their wage that will be subsidised.
An employee can still be made redundant while on furlough or afterwards.
Employees rights are not affected by being on furlough.
An employee must remain on furlough for a minimum of 3 weeks. However, they can be placed on furlough more than once, and one period can follow straight after an existing furlough period, this would enable job/furlough sharing. The scheme will be open for at least 3 months.
What you’ll need to make a claim
To claim, the employer will need:
- the company ePAYE reference number – we are not sure what this is yet!
- the number of employees being furloughed
- the claim period (start and end date)
- amount claimed (per the minimum length of furloughing of 3 weeks)
- the company bank account number and sort code
- a contact name for the company
- a contact phone number
You will need to calculate the amount you are claiming. HMRC will retain the right to retrospectively audit all aspects of your claim
You can only submit one claim at least every 3 weeks, which is the minimum length an employee can be furloughed for. Claims can be backdated until the 1 March if applicable.
Once HMRC have received your claim and you are eligible for the grant, they will pay it via BACS payment to a UK bank account.