COVID Business Guidelines

Last updated 10th November.

Please note: This page is updated regularly as we become aware of new advice and support.

A hub of advice and support during the COVID-19 pandemic.

Furlough Scheme Extended. Details for Employers

1. The Job Support Scheme that was due to come into effect on 1st November has been postponed.
2. The furlough scheme which was due to end on 31st October is continuing.
3. The furlough scheme works the same way as it did when the flexible furlough scheme was introduced and you can claim 80% of wages for unworked hours from HMRC.
4. Staff can work part-time or be fully furloughed but you need to pay 100% of the wages for hours worked.
5. You still have to pay all the employer’s NIC and the employer’s pension contributions, even on the 80% being claimed.
6. You do not need to have used the scheme previously to be eligible.
7. Staff do not need to have been previously furloughed but they needed to be on your payroll in October.
8. If you made anyone redundant or they stopped working for you on or before 23rd September, you can bring them back and furlough them.

Temporary changes to VAT and bonus for employers

VAT will be temporarily cut for food and non-alcoholic drinks

From 15 July 2020 to 12 January 2021, 5% VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK. Further guidance will be published by HMRC in the next few days.

Temporary VAT cut for accommodation and attractions 

From 15 July 2020 to 12 January 2021, 5% VAT will apply to supplies of accommodation and admission to attractions across the UK. Further guidance will be published by HMRC in the next few days. 

Job Retention Bonus

The government had introduced a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021. However, The Job Retention Bonus will no longer be paid in February, as the Coronavirus Job Retention Scheme has been extended until the end of March 2021. Further details about the extension are available.

Update to the job retention scheme

The most critical point to note is that employers have until 10th June to furlough any staff  previously not furloughed.

Key dates and employer contributions

June and July – existing furlough arrangements apply

From 1st August – employers can still claim 80% but not employer’s NIC and pension

From 1st September – employers can claim 70% but not employer’s NIC and pension. Employers also have to contribute 10% of the furloughed pay.

From 1st October –   employers can claim 60% but not employer’s NIC and pension. Employers also have to contribute 20% of the furloughed pay.

31st October the scheme ends

Employees must always receive at least 80% of their furloughed time up to the end of October 2020.

There is still an overriding cap of £2,500 per month per employee on claims.  

Furlough can be flexible from 1st July

Employers can bring furloughed staff back part time from 1st July 2020 and decide the hours and shifts patterns. The employer has to pay the full cost of the hours worked but can claim furlough, in line with the above, for the rest of the hours.

Staff issues

Whilst networking, I have heard employers saying some of their staff are refusing to come back to work because they are ‘enjoying being paid to sit at home’ and want to take advantage of the furlough scheme as much as possible. You may have come across similar situations. Whilst chatting with Mark Higgins, Employment Lawyer at Ralli Solicitors he referred me to his recent blog which discussed some of these issues along with other things you may not have thought about yet. Click here to read.

Ralli Solicitors provide a fixed price, insurance backed, legal advice scheme which has proved to be invaluable during this time. It covers employment issues and many more are included:-

• Contract Disputes
• Partnership Disputes
• Debt Recovery
• Commercial and Property disputes
• Data Protection
• Employment Law advice, contracts, cover for legal fees and awards
• HMRC investigations
• HSE Prosecutions
• General legal issues

If you would like further details, please contact Mark at Mark.higgins@ralli.co.uk

Bank Holiday Guidance

Holidays – ACAS have published guidance on holidays during the lockdown period. We’ve extracted a few points below but please read the full article here for further details, context and further explanations.

The government has introduced a temporary new law allowing employees and workers to carry over up to 4 weeks’ paid holiday over a 2-year period. This law applies for any holiday the employee does not take because of coronavirus, for example if:

– They’re self-isolating or too sick to take holiday before the end of their leave year

– They’ve had to continue working and could not take paid holiday

The employee may also need to carry over holiday if they’ve been ‘furloughed’ and they cannot take paid holiday because of coronavirus. Employees and workers may still be required to use a day’s paid holiday for bank holidays, including when they’re furloughed.

ACAS

Employment advice – if you need Employment Law advice, contact Mark Higgins of Ralli Solicitors on 0161 615 0655 mark.higgins@ralli.co.uk. It’s very difficult to get through to advice lines at the moment but Mark has been at the end of the phone for his clients and has been a great support to many businesses.

“Thanks Mark – really comprehensive and pertinent as usual – Andy”

Andy

“Thank you so much Mark, your advice is invaluable at this time “

Vicky

PAYE Payments

PAYE payments are still due unless the business owner calls HMRC to ask for an arrangement. Tel  0800 024 1222.

Would you like advice about your current situation? Call us on 0161 850 3355 or email karen@cosbookkeeping.co.uk