Mortgage Holidays
In March, the government introduced mortgage payment holidays to help those affected by COVID-19. These have been extended.
If you have not yet had a mortgage payment holiday, you can apply for a six month holiday. If you already have a mortgage payment holiday, this can be extended up to six months without being recorded in your credit file.
Job Retention Scheme
The Chancellor has just announced that the furlough scheme will be extended until the end of September 2021 to give people certainty as restrictions ease.
The level of grant available for an employer under the scheme will remain the same until 30th June 2021. To be eligible for the grant you must continue to pay your furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.
From 1st July 2021, the level of grant will be reduced and from this point, employees will be asked to contribute in part towards their furloughed employees’ wages. Employers contributions will be 10% in July and 20% in August and September.
Business Support Grants
Businesses that are forced to close as a result of these new restrictions will receive grants based on their rateable value.
This means that:
If you have a rateable value of £15,000 or under you will receive a monthly grant of £1,334, between £15,001 - £50,999 you will receive £2,000 and a rateable value of over £51,000 you will receive £3,000.
Self-Employed Income Support Scheme
The Chancellor has announced increased support for millions more workers through the Self-Employment Income Support Scheme.
The third grant covering November to January will now be calculated at 80% of average trading profits, up to a maximum of £7,500 – up from 55%.
Further information can be found here.
Loan extensions
The Government has announced an extension to loan schemes – the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, Coronavirus Large Business Interruption Loan Scheme and the Future Fund – to the end of January. They will also adjust the Bounce Back Loan Scheme rules to allow those businesses who have taken out less than their maximum (i.e. less than 25 per cent of their turnover) to top-up their existing loan giving businesses greater flexibility and support. Businesses will be able to take up this option; they can make use of this option once.