As things start to change, with potentially a new line in the sand being drawn with the gradual ending of furlough and schools re-opening, we thought we would update you in terms of how the financial landscape is changing in terms of government funding.
The Kickstart Scheme
It’s been pretty quiet on this front with no news on how businesses may apply and what the specific criteria is. We’ll continue to monitor this and make any announcements via social media, newsletter and website in the usual way.
In a nutshell, the government has pledged to fund or contribute towards new employment roles for 16-24-year olds who would might otherwise struggle to find work during these uncertain times. More details are on our website and we will continue to update it as the details are revealed.
Second round of SEISS is now open
Second and final grant applications are now available – open until 19th October 2020. You may claim this for the first or second time as long as your average income over the last three years is less than £50,000 and you have been adversely affected by the pandemic. It has a maximum claim limit of £6,570 and all SEISS grants are subject to tax and self-employed NI.
Once successful, it is paid directly into your bank within three working days.
All links to see if you qualify are accessible here:
Furlough support ending
The government is gradually phasing out the CJRS with September seeing furlough reducing to 70% of salary up to a maximum of £2187.50 per month. Employers will be expected to pay ER NICs and pension contributions and 10% of salary. In October this will reduce further to 60% up to £1,875 with employers expected to meet ER NICs, pension and 20% of salary.
Eat out to help out ending
The final day for enjoying the government backed incentive to eat out and support local restaurants and cafés is Monday 31stAugust, when many will enjoy a slightly cheaper bank holiday excursion no doubt!
5% VAT rate
The temporary reduction on VAT for the hospitality and tourism sector will continue until 12th January 2021. This runs alongside the 12 months’ business rates holiday and the opportunities for sector-specific grants available.
Many of these initiatives need to be applied for directly so we can’t always do it for you. However, we can advise on anything you are unclear on, so please always ask.