Extension of the UK Job Retention Scheme and introduction of the Local Restrictions Support Grant

Job Retention Scheme extended and Local Restrictions Support Grant announced

Over the weekend the UK Government made two announcements that will help to support UK businesses:

  • extension of the Job Retention Scheme; and
  • creation of a Local Restrictions Support Grant

Job Retention Scheme

The Job Support Scheme that was recently announced has been suspended and the old Job Retention Scheme (JRS) that was due to end in 31/10/20 has been extended until 30/11/20. The new JRS rules are more favourable than those of the old JRS in that the employer does not have to contribute to the furlough payment. At the moment, the scheme is set to end 30/11/20.

How the grant works

  • the employer can ask the staff person to work on a part-time basis and furlough them for the rest of their usual working hours.
  • the employer pays the staff person for the hours worked
  • the UK Government pays 80% of furloughed wages up to £2,500 for the hours furloughed
  • the employer pays all of the National Insurance and pension contributions
  • the employer has the option to top up to 100% of wages

Eligibility rules

The eligibility rules are that:

  • employers can claim for staff who were on payroll on 30 October 2020
  • employers must have made a PAYE Real Time Information submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for the staff person
  • staff that were on payroll on 23 September 2020 that were made redundant can qualify for the scheme if they are re-employed
  • neither the employer nor the staff person needs to have previously used the CJRS

Local Support Restriction Grant

A new grant has been introduced for businesses that are forced to close down their premises. The grant, called a Local Restrictions Support Grant, provides up to £3,000/month. Under this grant, businesses required to close in England due to local or national restrictions will be eligible for a grant according the their premises rateable value:

  • rateable value of £15k or under: £1,334 per month or £667 per two weeks
  • rateable value of between £15k-£51k: £2,000 per month or £1,000 per two weeks
  • rateable value of £51k or over: £3,000 per month or £1,500 per two weeks

You can read about the proposals in more detail here:

Job Retention Scheme extended and Local Restrictions Su […]

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