As many of the government’s Covid-19 support packages begin to draw to a close, there are a number of key dates and deadlines which businesses and the self-employed will need to be aware of in the coming months. There may even still be time to explore some of the initiatives that you may have missed first time round.
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The Eat Out to Help Out scheme comes to an end.
The government’s contribution under the Coronavirus Job Retention Scheme (CJRS) reduces to 70% per cent of wages up to a cap of £2,187.50 a month. Employers are now required to pay 10% of the wage bill (plus employer national insurance and pension contributions), so that furloughed employees continue to receive 80% of their usual wages capped at £2,500.00.
Deadline for restaurants and other eligible establishments to claim reimbursements under the Eat Out to Help Out scheme.
Last day to apply for a Future Fund loan. The Future Fund is a £250m fund which issues convertible loans to innovative UK companies with good potential, which typically rely on equity investment and are currently affected by Covid-19.
Government grants from the CJRS taper down to 60% of wages up to £1,875 a month. Employers are now required to pay 20% of the wage bill (plus employer national insurance and pension contributions), so that furloughed employees continue to receive 80% of their usual wages capped at £2,500.00.
BT launches its new bursary scheme providing 1,000 UK tech start-ups and entrepreneurs financial support. From October, eligible companies can apply for a bursary to benefit from free fibre broadband and mobile bundles.
Deadline for anyone wishing to claim a second grant through the Self-Employment Income Support Scheme. The scheme supports self-employed individuals (including members of partnerships) whose income has been negatively impacted by Covid-19.
The CJRS closes. Employees can no longer be furloughed after this date and employers must decide whether to:-
• bring employees back to work on their previous usual hours;
• bring employees back to work on reduced hours; or
• terminate their employment (normal redundancy rules would apply)
Last day to arrange the transfer of loans up to £50,000 from the following schemes into the Bounce Back Loan Scheme with your lender, if you wish to do so:-
• Coronavirus Business Interruption Loan Scheme (CBILS)
• Coronavirus Large Business Interruption Loan Scheme (CLBILS)
• COVID-19 Corporate Financing Facility
Under the Bounce Back Loan Scheme, lenders can provide a 6-year term loan from £2,000 up to 25% of a business’ turnover capped at £50,000. The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.
Deadline for employers to make claims under the CJRS.
Last possible day for applications for an Innovate UK continuity loan (unless all of the funds have been allocated prior to this date). The Innovate UK Coronavirus Business Support Package provides continuity grants and loans for R&D focused SMEs that are struggling to continue a live project for which they have an award from Innovate UK.
Date until which previously furloughed employees must have remained in continuous employment in order for employers to qualify for a £1,000 Job Retention Bonus. The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the Job Retention Scheme and who remains continuously employed through to 31st January 2021 and earns at least £520 a month on average between 1st November 2020 and 31st January 2021.
Deadline for payment of Self-Assessment payments on account deferred from 31st July 2020.
Deadline for payment of any VAT payments which were deferred between 20th March and 30th June 2020.
Get in touch
To discuss any of the support packages and schemes covered in this article, or for advice on any other issues facing your business at this time, please contact our Switchboard on 0191 384 2441 and they will direct you to an appropriate member of our team.
For advice on any employment-related matter, including queries in relation to the CJRS, please contact Jonathan Moreland.