17 December 2020
- Coronavirus Job Retention Scheme (the “Scheme”)
On 17 December 2020, the Chancellor announced a further update on the Scheme also known as “furlough”.
The Scheme has now been extended until the end of April 2021 and the government has confirmed they will continue to contribute 80% of employee’s wages for the hours not worked until the end of the Scheme. This means the previous expectation that the contribution would reduce from January 2021, will now not occur.
Employers therefore will only be required to pay employees salary, National Insurance Contributions (NIC) and pension contributions for the hours worked and NICS and pension contributions for the hours not worked.
- Government Backed Loans
The Chancellor also confirmed he would be extending the government guaranteed Covid-19 business loan schemes until the end of March.
Businesses will now be given until the end of March 2021 to access the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme and the Coronavirus Large Business Interruption Loan Scheme. These were originally set to close at the end of January 2021.
- The Self-Employment Income Support Scheme (SEISS)
SEISS has also been amended. The government has announced there will be a fourth grant covering the period from February to April 2021. Further guidance on this is expected to be released at the Budget.
- Budget
The Budget will now take place on 3 March 2021. It has been briefed that this will set out the next phase of the plan to tackle the virus and protect jobs.
The changes mean that businesses will be able to plan with government support in the first few months of the New Year. The government has also indicated more certainty will be provided to business beyond March 2021 through a successor loan scheme. Details of this scheme are expected to be released in due course.
Please note that the guidance is constantly changing and we therefore recommend that you check the position with us before taking any action.
For further information, please contact our Gill Brown or Jacqueline Kendal in our Employment team.
Call Gill on 01256 854605 or email [email protected]
Call Jacqueline on 01256 854626 or email [email protected]
Phillips Solicitors Limited
Disclaimer
This article is current at the date of publication set out above and is for reference purposes only. It does not constitute legal advice and should not be relied on as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.
Please call us or email and we’ll get back to you as soon as possible.
- 01256 460830
- [email protected]
The Annual Allowance With the end of the current tax year fast approaching, anyone wishing to use their 2023/24 (and potentially their 2022/2023) annual allowance in relation to gifts o ...
MoreThis week (4 – 8 March) is Update your Will Week Phillips Law is encouraging people to consider the risks of not having a Will following new research revealing nearly half of UK adults ...
MorePhillips Law is delighted to have advised Mactaggart Family & Partners and Longstock Capital Limited on a multi-million-pound agreement for lease with The AA to move their headquart ...
MoreIn our January update we reported on the Supreme Court decision in the long running dispute between Deliveroo and the unions representing many of its riders. You can read the full Judgm ...
MoreFrom 6 April 2024 carers will have a day one right to request one week’s unpaid carer’s leave per year. Draft regulations for the Carer’s Leave Act 2023 provide the detail on this new r ...
MoreWelcome to the new year! As we embark on 2024, it’s crucial to stay informed about the latest developments in employment law. Here’s a snapshot of key updates and changes th ...
More