Yesterday’s announcements by the Chancellor of the exchequer saw changes introduced to the Job support scheme and the extension to the self-employed income support scheme. Both schemes were announced as part of the Winter economy plan in September and major changes are now being made to the schemes before even the first claims are able to be made. Three new measures were added:
Job Support Scheme will be more generous.
- Employees will only be required to work one fifth (20%) of their hours for employers to be able to access the scheme.
- The government will also significantly increase the proportion they pay towards the wages for hours not worked to 61.67% with businesses only having to contribute 5%.
- This means the maximum contribution that an employer can receive for an employee’s wages is 49.34% of the total pay.
The Chancellor declared this to be one of the most generous versions of short time work schemes in the world.
Self-Employed income support scheme will be increased.
- The government will double the amount claimable as part of the new wave of SEISS grants to 40% (it was previously 20%).
- This will be to a maximum of £3,750 for the 3 month period claimed.
Introduction of new grant scheme for those businesses in high alert level (tier 2) areas, even if they can remain open
- This will be available for businesses in sectors like hospitality, leisure and accommodation who are experiencing the worst effects of coronavirus due to the current restrictions.
- Businesses will receive cash grants of up to £2,100 per month backdated to August for every month the restrictions are in place.
- The grant is equivalent to 70% of those available to closed businesses in Tier 3.
- The rates for Tier 2 will be:
- Businesses with a rateable value of £15,000 or less will qualify for a £934 a month grant.
- Those with a value between £15,000 and £51,000 will get up to £1,400 a month.
- Those with a value of £51,000 will get the full £2,100 a month.
- Those with a rateable value above £51,000 will not qualify for any support.
As always if you have any questions please get in touch to discuss the schemes available for your business.
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