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APH Accountants Covid-19 Business Support Update 22.10.20

Hi Everyone,

Bit of a rush to get this one out to you all, as the relevant scheme is just days away from starting and it has just been significantly changed by the Chancellor, but at least it’s for the better so, finally some good news!

Rishi has just announced some amendments to the JSS (Job Support Scheme), the monthly grants and also the self-employed income support scheme.

  • Open businesses which are experiencing considerable difficulty will be given extra help to keep staff on as government significantly increases contribution to wage costs under the Job Support Scheme, and business contributions drop to 5%
  • Business grants are expanded to cover businesses in particularly affected sectors in high-alert level areas, helping them stay afloat and protecting jobs
  • Grants for the self-employed doubled to 40% of previous earnings

Further details of the above changes are shown below. Please bear in mind the devil is in the detail and we are still waiting for the exact mechanism of how to claim, when to claim and what to claim etc. We will do our best to provide this information as soon as we can.

A list of all our contact numbers is below should you wish to speak with any of us.


Contact APH Accountants Wirral Merseyside chartered accountants for self employed limited companies and start ups

Office Number: 0151 630 4542    
Email: accounts@aphaccountants.co.uk

Paul White: 0151 556 7247           
Email: paulwhite@aphaccountants.co.uk

Helen White: 0151 556 7241        
Email: helenwhite@aphaccountants.co.uk

Matt Newman: 0151 556 7246     
Email: mattnewman@aphaccountants.co.uk

Carla Ashley: 0151 556 7244       
Email: carlaashley@aphaccountants.co.uk

Kerry Roe: 0151 556 7240            
Email: kerryroe@aphaccountants.co.uk

Dave Parry: 0151 556 7245          
Email: daveparry@aphaccountants.co.uk

Danielle Levy: 0151 556 7243     
Email: daniellelevy@aphaccountants.co.uk

Katy Holmes: 0151 556 7249       
Email: katyholmes@aphaccountants.co.uk

Lauri Murphy: 0151 556 7248       
Email: laurimurphy@aphaccountants.co.uk


  1. Job Support Scheme (JSS) – changes
  2. Local Restiction Support Grant
  3. Self Employment Income Support Scheme (SEISS)

1) Job Support Scheme (For Businesses that remain open)

Under the revised scheme, employers will pay less and staff can work fewer         hours before they qualify.

Instead of a minimum requirement of the employer paying 55% of wages (33% minimum for hours worked plus a third of the remaining 67% = 22% – So 33%+22% to give 55%)

Employers will now only have to pay for a minimum of 20% of usual hours worked, and 5% of hours not worked. A much better deal than before and more affordable to employers.

The government will now fund 62% of the wages for the usual hours not worked.

Example: An Employee who earns £1,100 per normally

Employee works 20%                            £220

Employer 5% of unworked hrs             £44 (Max is £125)

Gov 62% of unworked hrs                    £545.60

Employee will Earn                                £809.60 (Max is £1,541.75)

So Employee will receive 73% of their normal wages

This more than doubles the maximum payment possible to £1,541.75 (Previously £697.92),

The scheme will, as before, be open to all small businesses and larger businesses that can show an impact on their business.

Payments of the grant will only be made AFTER you have paid your Employees and an RTI return has been submitted

To summarise the changes:

  • Previously employees had to work a minimum of 1/3rd  (33%) of their usual hours to qualify, this has now been changed to 1/5th (20%).
  • Previously employers were told they would have to then pay a further 33% of the employees usual hours that they aren’t working. Now this is just 5%.
  • Previously the government said they would contribute a further 33% of the employees unworked hours. This has been increased to 62%

More information can be found here:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/928761/JSS_Open_factsheet.pdf

The above information is for business that remain open. If your business is forced to close then you will be eligible for the Job Support Scheme Enhancement where you claim 2/3 thirds of your Employees normal wages. See last weeks Newsletter for more info or visit our website:

https://www.aphaccountants.co.uk/news/covid-19-business-support-update-16-10-20/

HMRC Checks

  1. HMRC will check claims.
  2. Payments may be withheld or need to be paid back if a claim is found to be fraudulent or based on incorrect information.
  3. Grants can only be used as reimbursement for wage costs actually incurred.
  4. Employers must agree the new short-time working arrangements with their staff, make any changes to the employment contract by agreement, and notify the employee in writing.
  5. This agreement must be made available to HMRC on request
  6. HMRC will inform Employees directly of full details of the claim

IF IN DOUBT ON POINTS d-f CONSULT WITH A HR PROFESSIONAL

I use Laura from Concentric HR Ltd who I cannot recommend highly enough. She has been a god send through the Covid Crisis with HR issues. If you require Laura’s contact details please let me know

Further and full Information will be available on the gov website in the coming days.

2. Local Restrictions Support Grant

This is where is gets confusing!

The Chancellor has also announced approved additional funding to support cash grants of up to £2,100 per month primarily for businesses in the hospitality, accommodation and leisure sector who may be adversely impacted by the restrictions in high-alert level areas – Tier 2

If you are in Tier 3 then the information we supplied last week applies to you:

Tier 3 – Recap

Note: businesses can still provide a takeaway service and claim the grant.

The grant you can claim depends on the rateable value of your business premises as follows:

  • Rateable values of up to £15,000 – £667 every 2 weeks of business closure
  • Rateable values between £15,000 and £51,000 – £1,000 every 2 weeks of closure
  • Rateable values of over £51,000 – £1,500 every 2 weeks of closure

The grant is also available on a discretionary basis to some other businesses who do not meet all of the above criteria, such as businesses who don’t pay business rates but have been forced to close, and also some businesses that have not been required to close but have been severely impacted (for example by the closure of customer businesses).

https://www.gov.uk/guidance/check-if-youre-eligible-for-the-coronavirus-local-restrictions-support-grant

Tier 2 – Additional Funding

These businesses receive grants equivalent to 70% of the grants for which legally closed businesses are eligible (Tier 3)

This would be equivalent to

  • For properties with an RV of £15k or under, grants of £934 per month
  • For properties with an RV of between £15k-£51k, grants of £1,400 per month
  • For properties with an RV of £51k, grants of £2,100 per month

It will be up to Local Authorities to determine what precise funding to allocate to each business – the above levels are only an approximate guide.

These grants will be available retrospectively for all areas who have already been subject to restrictions and come on top of higher levels of additional business support for Local Authorities moving into Tier 3 (Liverpool City Region Hospitality and Leisure Support Grant)

Businesses which have been under enhanced rules will be able to backdate claims to August.

3. Self Employed Income Support Scheme

Today’s announcement increases the amount of profits covered by the two forthcoming self-employed grants from 20 per cent to 40 per cent, meaning the maximum grant will increase from £1,875 to £3,750.

https://www.gov.uk/government/publications/self-employment-income-support-scheme-grant-extension/self-employment-income-support-scheme-grant-extension

More details on how to make a claim for the above announced support are still to emerge

HMRC Checks

  1. HMRC will check claims.
  2. Payments may be withheld or need to be paid back if a claim is found to be fraudulent or based on incorrect information.

As soon as we know any more information on the above we will be in touch.

Please recommend us or refer us to anyone you know who needs an Accountant or could benefit from our services.

Please feel free to call, email or whatsapp us anytime for help and assistance.

Kia Kaha

Paul/Matt/Carla and all the Team at APH

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