New national restrictions from 5th November and business support available

Guidance For Businesses On The Government’s Announced New National Restrictions From 5th November / Business Support Available.

The new measures introduced will apply nationally for four weeks from Thursday the 5th November to Wednesday the 2nd December. At the end of this period, the Government will analyse the latest data on a regional basis to determine ongoing measures.

In order to reduce social contact, the Government has ordered certain businesses and venues to close, which include:

  • All non-essential retail (including, but not limited to clothing, electronics stores, vehicle showrooms, travel agents, betting shops, auction houses, tailors, car washes, tobacco and vape shops) *Non-essential retail can remain open for delivery to customers and click-and-collect
  • Entertainment venues – which include theatres, concert halls, cinemas, museums and galleries, casinos, adult gaming centres, arcades, bingo halls, bowling alleys, concert halls, zoos and other animal attractions and botanical gardens
  • Indoor and outdoor leisure facilities – to include, 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
  • Beauty/Personal care facilities – such as hair, beauty and nail salons, tattoo parlours, spas, massage parlours, body and skin piercing services, non-medical acupuncture, and tanning salons

* Hospitality venues – which includes restaurants, bars and pubs are required to close, but they can still provide takeaway and delivery services (the takeaway however 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)

 

  • 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.
  • A full list of the business closures will be published on the Governments website

 

Financial Support Available

Due to the extension of the Coronavirus Job Retention Scheme (CJRS), the Job Support Scheme which was due to implemented from the 1st November 2020, has now been postponed (and the guidance on the governments website surrounding this scheme has been withdrawn on the 1st November 2020)

The CJRS (also know as furlough scheme) will remain open until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the October scheme, and is deemed ‘more generous for employers than of that previous’.

* Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme, which will continue for a further month.

 

Details of scheme:

The amount of the grant will be reflective of the scheme in August, whereby the government will pay 80% of wages (up to a cap of £2,500), and employers will pay employer National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work. As under the current CJRS, flexible furloughing will be allowed, in addition to full- time furloughing.

* Further details regarding how to claim this extended support scheme and details on the updated claims service will be announced by government in due course

 

Business Grants:

Businesses that are required to close in England due to local / national restrictions will be eligible for the following:

  • For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
  • For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
  • For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.

*Business premises forced to close in England are to receive grants worth up to £3,000 per month under the ‘Local Restrictions Support Grant’. In addition, £1.1bn is being handed to Local Authorities, distributed on the basis of £20 per head, for one-off payments, to support businesses more broadly.

 

SEISS:

The Self-Employment Income Support Scheme grant extension (updated on 2nd November) provides critical support to the self-employed in the form of two grants, each available for three month periods covering November 2020 to January 2021 and February 2021 to April 2021.

 

Eligibility of SEISS:

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 you do not have to have claimed the grants)
  • declare intention 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 COVID-19

* Grants will be paid in two lump sum instalments each covering a three-month period.

 

The enhanced scheme will include an initial first grant that will cover a three month period from the 1st November 2020 until the 31st January 2021. The government will provide a taxable grant covering 55% of average monthly trading profits, paid out in a single instalment covering three months average profits (and capped at £5,160 in total). The original scheme was based on 40% of average monthly profit, increased to 80% for November (announced by the government and updated guidance published on the 2nd November 2020), which averages 55% over the three month period.

 

The second grant will cover a three month period from 1 February 2021 until 30 April 2021. The government will review the level of the second grant and set this in due course.

The grants are treated as taxable income and therefore are subject to National Insurance contributions.

The online service for the next grant will be available from 30 November 2020. Further details about claiming and application will follow in due course.

 

Here to help you at GM&Co

If you are at all worried about your business, please call us for an empathetic chat and assistance in understanding in what is available and how to gain access.  (We are regularly monitoring to keep our clients fully informed and up to date, as and when the detail is available from the government).

If you would like further information please call us on 0121 550 8509 or alternatively email info@godfreymansell.co.uk

Disclaimer:

Whilst every effort in ensuring the accuracy of the content of these notes has been considered, we cannot be held responsible in any way in regards to any consequences and/or decisions arising from the information provided. For specialist advice tailored to your individual circumstances – please seek professional advice and contact us on the above details.

Wishing you safe and well from the team at GM&Co