COVID-19 Government support and Grants available in 2021
Government grants will continue for the foreseeable future and certainly until 31 March 2021. The main grants and supports available now are outlined below. Please contact us if you need help in claiming any of these.
Coronavirus Job Retention Scheme (CJRS)
The CJRS will remain open until the end of April 2021. From 1 November 2020 employers can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month. Employers can claim for employees who were employed on 30 October 2020, as long as they have made a PAYE RTI submission to HMRC between the 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee. This may differ where they have re-employed an employee after 23 September 2020. All employers with a UK bank account and UK PAYE schemes can claim the grant.
Employers can furlough employees for any amount of time and any work pattern, while still being able to claim the grant for the hours not worked. Employers might need to contribute towards the cost of their furloughed employees’ wages for these periods. For periods from 1 November 2020, they will need to pay for the cost of employer NICs and pension costs.
So far, the Coronavirus Job Retention Scheme (CJRS) scheme has protected 9.6 million jobs across the UK with more than one million businesses accessing loans to help them through the crisis.
Self-Employment Income Support Scheme Grant Extension (SEISS)
SEISS is available in the form of 2 further grants, each available for 3-month periods covering November 2020 to January 2021 and February 2021 to April 2021.
To be eligible for the grant extension, self-employed individuals, including members of partnerships, must:
- have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
- declare that they intend to continue to trade and either:
- are currently actively trading but are impacted by reduced demand
- were previously trading but are temporarily unable to do so
Coronavirus Business Interruption Loan Scheme
The scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million. The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months. It has been confirmed that the government-guaranteed Covid-19 business loan schemes will be extended until until the end of March.
The Coronavirus Large Business Interruption Loan Scheme
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) provides financial support to larger businesses affected by coronavirus (COVID-19). The scheme helps medium and large sized businesses to access loans and other kinds of finance up to £200 million. The government guarantees 80% of the finance to the lender and is open to applications until March 2021
Bounce Back Loans
The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000. The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months, the interest rate will be 2.5% a year. The scheme is open to applications until March 2021
The Future Fund
This scheme will issue convertible loans, between £125,000 to £5 million, to innovative companies which are facing financing difficulties due to the coronavirus outbreak.
The Future Fund provides government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors.
These convertible loans may be an option for businesses that rely on equity investment and are unable to access other government business support programmes because they are either pre-revenue or pre-profit.
The scheme is open for applications until 31 January 2021.
£4.6 billion in new lockdown grants to support businesses and protect jobs
Businesses in the retail, hospitality and leisure sectors are to receive a one-off grant worth up to £9,000, the Chancellor has announced.
- Chancellor announces one-off top up grants for retail, hospitality and leisure businesses worth up to £9,000 per property to help businesses through to the Spring
- £594 million discretionary fund also made available to support other impacted businesses
- comes in addition to £1.1 billion further discretionary grant funding for Local Authorities, Local Restriction Support Grants worth up to £3,000 a month and extension of furlough scheme
If you need any further advice, please don't hesitate to get in touch with us today.