Further help for businesses and a Furlough scheme extension to 31 March 2021
Furlough Scheme Extension
The furlough scheme was extended today, 5 November, as announced by the Chancellor Rishi Sunak. He announced this along with further measures to help businesses through this period of lockdown and beyond.
The furlough extension scheme, or Coronavirus Job Retention Scheme (CJRS) was due to end on 31 October 2020 so this further help for businesses will be very much welcomed.
The extension of the Furlough Scheme is to support workers across the United Kingdom to 31 March 2021. Employers will retain the option of furloughing employees on a full-time or flexible basis (where employees work some but not all of their contractual hours).
Furloughed employees will receive 80% of their usual salaries. Employee wages will be for any hours not worked, up to a maximum of £2,500 per month (proportional to hours not worked).
Self-employed income support grant scheme (SEISS)
The Chancellor has also announced there will be an increase in the payments to the self-employed from November to 80% of average trading profits. This is a welcome increase from the previous 55%.
The third grant will cover November 2020 to January 2021 and be calculated at 80% of average trading profits, up to a maximum of £7,500.
Bounce Back Loans
Further measures include changes to the Bounce Back Loans. This will see an extension to the application window and an opportunity for businesses who did not apply for the maximum to reapply for a higher amount.
The government have now confirmed that the application deadline for this support has been extended to 31 January 2021.
The Bounceback Loan Scheme (BBLS) has been set up to allow smaller business to access funds more quickly during the Conronavirus pandemic.The scheme helps small and medium businesses borrow between £2,000 and up to 25% of their turnover up to £50,000. The scheme is 100% guaranteed by the government and there will be no fees or interest for twelve months. After twelve months the interest rate will be 2.5%.
Here to support you
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