Yesterday (22nd October) Chancellor Rishi Sunak increased business support for SME employers and workers hit by COVID-19 restrictions, including big changes to the job support scheme. The job support scheme kicks in on 1 November 2020, after the existing furlough scheme ends on 31 October 2020.
Cheshire accountants, Afford Bond said: “The first iteration of the job support scheme required employees to work at least a third of their regular hours and be paid at their usual rate. For the remaining hours not worked, the Treasury and the employer would pay for a third of the worker’s wages up to the £697.92 a month cap.”
Going forward, employers will have to pay for a minimum of 20% of usual hours worked, and 5% of hours not worked. The Government will now fund 62% of the wages for hours not worked, more than doubling the maximum payment to £1,541.75 a month. The third and fourth taxable grants available through the self-employed income support scheme (SEISS) will also increase to £3,750. Originally, the next SEISS grant was to be capped at £1,875 but the amount of profits covered has been raised from 20% to 40%.
Rishi Sunak said: “I’ve always said we must be ready to adapt our financial support as the situation evolves, and that is what we are doing. These changes mean that our support will reach many more people and protect many more jobs.”
As always, if you need expert SME business advice, tax advice or help with Covid-19 business grants, please contact Paul Edwards at Nantwich office on T: 01270 623731 or Chris Monks at Wilmslow on T: 01625 416380.