Grant Subsidy Allowance
Grant Subsidy Allowance – The Government has updated the guidance on the current grants that are available to businesses in line with the Government’s recent announcement that the State Aid caps were being changed now that the UK is no longer a member of the EU.
The replacement for Coronavirus support is called the Grant Subsidy Allowance and has a cap of £10,935,000, which consists of three components:
- Small Amounts of Financial Assistance Allowance – Businesses allowed up to £335,000 (subject to exchange rates) over any period of 3 years
- COVID-19 Business Grant Allowance – Businesses are allowed up to £1,600,000
- COVID-19 Business Grant Special Allowance – Businesses that have reached their limits under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance may be able to access a further allowance of funding under these scheme rules of up to £9,000,000, provided certain conditions are metThe details of these three allowances is available in the updated guidance documents for the different grant schemes
- LRSG (closed) Addendum: Tier 4
- LRSG (Closed)
- LRSG (Sector)
- Christmas Support Payment for Pubs
- Subsidy allowance and application deadlines for COVID support grants – Following the increase in cap on COVID support grants to businesses in England, details of the new subsidy allowance which came into effect on 4 March have been added to the following guidance, along with the deadline for applications:
- Local Restrictions Support Grant (for closed businesses) and LRSG (closed) Addendum: Tier 4) – deadline 31 March 2021
- First payment cycle, 5 January to 15 February – Closing Date: 31 March 2021
- Second payment cycle, 16 February to 31 March – 3 Closing Date: 1 May 2021
- Local Restrictions Support Grant (LRSG (Open)) – deadline 31 March 2021
- Local Restrictions Support Grant (LRSG (Sector)) – deadline 31 March 2021
- Closed Business Lockdown Payment – deadline 31 March 2021
- Local Restrictions Support Grant (for closed businesses) and LRSG (closed) Addendum: Tier 4) – deadline 31 March 2021
- ARG Update – The guidance on the ARG grant has been updated to specifically include hospitality, tourism and events businesses that are not eligible for other grants as well as business required to close but which do not pay business rates
Updated Financial Support Finder – The Government’s online tool for helping businesses find what financial support they are entitled to, has been updated in line with recent changes to support announced in the budget.
Updated: Wednesday, 10th March 2021.
Please also see our page on Tips for Coffee Shops, Roasters and Distributors.
Guidance for employees, employers and businesses in providing advice about the COVID-19.
Coronavirus Job Retention Scheme (updated 20th November 2020)
- The Government has now published the guidance for the extended CJRS with details of how to claim for periods after 1 November 2020. Some key points are:
- From 1 November 2020 employers can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month.
- For periods from 1 November onwards, employers can claim for employees who were employed on 30 October 2020, as long as you have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee. So if employees have taken cuts in hours or pay during since 19th March, this will not impact on their furlough pay
- You do not need to have previously claimed for an employee before the 30 October 2020 to claim for periods from 1 November 2020.
- Employers can furlough employees for any amount of time and any work pattern
- For periods from 1 November 2020, you will only need to pay for the cost of employer NICs and pension costs.
- There is no maximum number of employees you can claim for from 1 November 2020.
- Employees continue to maintain all their employment rights and accrue holiday pay as previously
- Check which Employees can be Furloughed – There is separate guidance detailing how the employment status of workers impacts on a business’ ability to furlough them. Some of the key points here are:
- For employees on Fixed Term Contracts, if fixed term contract has not already expired, it can be extended or renewed for claim periods after 1 November 2020
- If the employee’s fixed term contract expired after 23 September, they can be re-employed and claimed for as long as the other relevant eligibility criteria are met.
- Apprentices can be furloughed in the same way as other employees and they can continue to train whilst on furlough.
- For claim periods after 1 November 2020, a new employer is eligible to claim in respect of employees of a previous business transferred if the TUPE or PAYE business succession rules apply to the change in ownership. The employees being claimed for should have been employed by their prior employer on or before 30 October 2020 and transferred from them to their new employer on or before 1 September 2020
- If you made employees redundant, or they stopped working for you on or after 23 September 2020 you can re-employ them and put them on furlough.
- The government is reviewing whether employers should be eligible to claim for employees serving contractual or statutory notice periods and will change the approach for claim periods starting on or after 1 December 2020, with further guidance published in late November.
- Calculate How Much You Can Claim – This is the online calculator that will help you determine how much you can claim. The key points here are:
For Employees on Fixed Pay the reference period is the last pay period ending on or before 19 March 2020 for employees who either:
- were on your payroll on 19 March 2020, that is you made a payment of earnings to them in the tax year 2019 to 2020 which was reported to HMRC on a Real Time Information (RTI) Full Payment Submission (FPS) on or before 19 March 2020
- you made a valid CJRS claim for in a claim period ending any time on or before 31 October 2020
- For all other employees, the reference period is the last pay period ending on or before 30 October 2020;
- For Employees’ on Variable Pay who were on your payroll on 19 March 2020, you should calculate 80% of the higher of:
- the wages earned in the corresponding calendar period in the tax year 2019 to 2020
- the average wages payable in the tax year 2019 to 2020
- For all other employees’ you should calculate 80% of the average wages payable between 6 April 2020 (or, if later, the date the employment started) and the day before they are furloughed on or after 1 November 2020.
- How To Claim – Once you have calculated how much you can claim, there is a separate online portal for making an application. It is important to note that 30 November 2020 is the last day employers can submit or change claims for periods ending on or before 31 October 2020. The cut-off dates for claims are:
|Claim for furlough days in||Claim must be submitted by|
|November 2020||14 December 2020|
|December 2020||14 January 2021|
|January 2021||15 February 2021|
|February 2021||15 March 2021|
14 April 2021
More information on this can be found on GOV.UK.
If you’re self-employed or a member of a partnership and have been adversely affected by coronavirus (COVID-19) find out if you can use this scheme to claim a grant.
The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. This is a temporary scheme, but it may be extended.
If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist.
The grant will be subject to Income Tax and self-employed National Insurance.
There is other support available if you’re not eligible for the grant.
HMRC will work out if you’re eligible and how much grant you may get. But you can follow these steps to help you understand how we will do this and what you can do now.
See full article here and published 26th April with an update on the 29th May
The Chancellor, Rishi Sunak, has announced new “bounce back loans” for small businesses affected by the Covid-19 crisis ( Micro business loans unveiled as part of COVID-19 support).
The government says it will guarantee 100% of loans up to £50,000, capped at 25% of turnover, and will pay the interest for the first 12 months.
Rishi Sunak told the House of Commons the micro loan scheme would provide a “simple, quick, easy solution for those in need of smaller loans” with “no complex eligibility criteria.” He said they would be available from 9am on Monday 4 May.
These new emergency loans are in addition to the Coronavirus Business Interruption Loan Scheme (CBILS).
All essential workers in England, and members of their households who are showing symptoms of coronavirus will now be able to get tested, the government has announced.
- The biggest widening of access to coronavirus testing made possible due to substantially increased testing capacity
- Essential workers with coronavirus symptoms can get tested, helping them return to work if test is negative
- Broad range of testing methods being rolled-out to increase accessibility, including home testing kits, mobile testing sites and satellite testing kits
- New campaign to provide clear information for essential workers on how to get a test.
A new campaign will help essential workers in England – including NHS and care staff, teachers, hospital cleaners, public servants, the emergency services, supermarket staff, delivery drivers, and other critical infrastructure staff – to access testing.
Booking the test has been made simpler via a new online system. From today, employers can register and refer self-isolating staff, and from tomorrow employees will be able to book a test directly for themselves or members of their household who are experiencing symptoms – a high temperature or new continuous cough.
This will speed up the process of getting an appointment and take the burden off employers, helping reach everyone who has symptoms at the earliest opportunity.
See full article here and published 23 April 2020
A big thank you to Wedlake Bell who have provided a comprehensive (but simple explanation) of the new Coronavirus Job Retention Scheme (“the Scheme”). This allows employers (in certain circumstances) to “furlough” employees whilst claiming a financial grant from HMRC. Read the full document here.
(Wedlake Bell LLP, 71 Queen Victoria Street, London EC4V 4AY | T: +44 (0)20 7395 3000 | E: firstname.lastname@example.org)
There is an updated page on (3rd April 2020) on how SSP ahould be paid to employees due to coronavirus (COVID-19).
Temporary changes to the VAT payments due between 20 March 2020 and 30 June 2020 to help businesses manage their cash flow. Updated 7th May 2020.
How to access government financial support if you or your business has been affected by COVID-19.
FSB – Experts in Business
As experts in business, they offer their members a wide range of vital business services including.
- financial expertise
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- a powerful voice heard in government.
Our mission is to help smaller businesses achieve their ambitions. FSB Coronavirus advice.
Acas, the Advisory, Conciliation and Arbitration Service.
We work with millions of employers and employees every year to improve workplace relationships. We’re an independent public body that receives funding from the government.
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Local government is responsible for a range of vital services for people and businesses in defined areas. Among them are well known functions such as
- Social care
- Housing and planning
- Waste collection and
- also lesser known ones such as licensing, business support, registrar services and pest control.
Our budget tool will help you to find the right debt solution for you and your business. Start here to get the help and support you need.
Page updated: 10th March 2021