On the 31st October 2020, the Prime Minister Boris Johnson, announced a lockdown in England from Thursday 5th November 2020 for 4 weeks. This has led to changes in the support that was previously announced affecting the following areas:

– Coronavirus Job Retention Scheme
– SEISS grants
– Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS)

In addition, please find details about which business must close under the lockdown rules.

Coronavirus Job Retention Scheme

The Job Retention Scheme has been extended until December 2020.

The grant level will mirror levels available in August 2020, 80% of wages up to a maximum of £2,500 and the employers will be responsible for paying the employers national insurance contributions and employer pension contributions.

Flexible furloughing will still be available in addition to full time furloughing.

All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the CJRS. To be eligible to be claimed for under this extension, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.

The Job Support Scheme will be introduced following the end of the Job Retention Scheme.

SEISS Grants

The level of the third grant, for the period 1st November 2020 to 31st January 2021, will be based on 55% of average trading profits, rather than the previously announced 40%, and will now be capped at £5,160.

This is due to an increase in the amount of grant available for November 2020 being increased from 40% to 80%, therefore leading to an overall increase for the three months from 40% to 55%.

To be eligible for the Grant Extension self-employed individuals, including members of partnerships,
must:

– have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
– declare that they intend to continue to trade and either:
– are currently actively trading but are impacted by reduced demand due to coronavirus
– were previously trading but are temporarily unable to do so due to coronavirus

The scheme has not been extended to businesses that were not eligible for the first and second grants and information from 2019/20 returns will not be taken into account.

The online service for the next grant will be available from 30 November 2020 rather than in December 2020 as previously announced.

The level of the fourth grant for the period 1st February 2021 to 30th April 2021 is to be kept under review and announced in due course.

Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS)

Applications for Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS) were due to close, however applications will now be accepted up to 31st January 2021.

Coronavirus Business Interruption Loan Scheme (CBILS)

The scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million.

The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.

More information can be found: https://www.gov.uk/guidance/apply-for-the-coronavirus-businessinterruption-loan-scheme

Bounce Back Loan Scheme (BBLS)

The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £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. After 12 months the interest rate will be 2.5% a year.

More information can be found: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-backloan

Businesses which must Close

To reduce social contact, the Government has ordered certain businesses and venues to close.
These include:

– all non-essential retail, including, but not limited to clothing and electronics stores, vehicle showrooms, travel agents, betting shops, auction houses, tailors, car washes, tobacco and vape shops.
– indoor and outdoor leisure facilities such as bowling alleys, leisure centres and gyms, sports facilities including swimming pools, golf courses and driving ranges, dance studios, stables and riding centres, soft play facilities, climbing walls and climbing centres, archery and shooting ranges, water and theme parks.
– entertainment venues such as theatres, concert halls, cinemas, museums and galleries, casinos, adult gaming centres and arcades, bingo halls, bowling alleys, concert halls, zoos and other animal attractions, botanical gardens.
– personal care facilities such as hair, beauty and nail salons, tattoo parlours, spas, massage parlours, bodyand skin piercing services, non-medical acupuncture, and tanning salons.

Food shops, supermarkets, garden centres and certain other retailers providing essential goods and services can remain open. Essential retail should follow COVID-secure guidelines to protect customers, visitors and workers.

Non-essential retail can remain open for delivery to customers and click-and-collect.

Playgrounds can remain open.

Hospitality venues like restaurants, bars and pubs must close, but can still provide takeaway and delivery services. However, takeaway of alcohol will not be allowed.
Hotels, hostels and other accommodation should only open for those who have to travel for work purposes and for a limited number of other exemptions which will be set out in law.

A full list of the business closures will be published and set out in law