Coronavirus Job Retention Scheme

Along with the enforced closures of leisure, retail, hospitality, and other non-essential establishments came the fear that companies would be unable to continue paying their staff, leading to wide-scale redundancies and contract terminations. In an effort to combat this, the Coronavirus Job Retention Scheme has been put in place to enable companies to keep employees, who would have otherwise been laid off, on the payroll.

• Wage subsidy which covers 80% of a qualifying employee's wage

• Employers must identify applicable 'furloughed' workers and notify them that their status has changed accordingly

• Monthly cap of £2,500 per furloughed employee

• Employees can top up salaries above this level if they choose

• Online portal will be set up to allow employers to submit information on designated furloughed workers and apply for partial reimbursement of their salary

• Scheme will run for an initial three-month period, backdated from 1 March 2020, and will be extended if required

• Available to all UK businesses

Self-Employment Income Support Scheme

With the self-employed just as likely to be suffering a downturn in trade, a support package has been put together which is designed to mirror the help given to employees through the Coronavirus Job Retention Scheme. Aimed at those for who more than half of their income comes from self-employment and who have experienced a drop in trading profits due to COVID-19.

• Non-repayable grant which covers 80% of average monthly profits

• Average monthly profits calculated based on previous three years

• Subject to a £2,500 monthly cap

• Only available to those with yearly earnings below £50,000

• Must have a tax return for 2018-19; late filers have four weeks to submit their returns in order to qualify for the scheme

• Grant will be taxable and must be declared on returns by January 2022

• Not available until June, however payments will be backdated to March and paid as a single lump sum

• Will run for a minimum of three months and may be extended beyond this point

• Self-employed individuals can continue to work while receiving this grant

Business Rates Holiday

Originally announced in the Budget, a business rates holiday for those in the retail, leisure, and hospitality sector has recently been extended to provide greater support to an industry which was already under pressure.

• All retail, leisure, and hospitality businesses in England will be given a 12-month business rates holiday, regardless of their rateable value

• This includes shops, restaurants, bars, cafes, cinemas, live music venues, and hotels, amongst others

• The business rates holiday is available to all companies - big or small - within this sector, not just SMEs

• Automatic entitlement with no application necessary

• Council tax bill for April 2020 will be issued - or reissued - to exclude the charge for business rates

• A business rates holiday will also be introduced for nurseries in England for the 2020-21 tax year