For those who are self-employed, to those running or working in smaller or larger businesses, here’s the financial support you can receive from the government
On 4 January 2021, the government announced another national lockdown, meaning employees had to return to remote working, and some businesses had to close. As a result, Rishi Sunak announced a £4.6bn fresh financial support package for struggling UK companies during the lockdown. Here we review some of the current types of financial support in place for employers and employees.
The Coronavirus Job Retention Scheme has been extended several times and is currently open until April 2021. Eligible employees can still receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.
Payroll teams can claim for employees on any type of employment contract, including full-time, part-time, agency, flexible or zero-hour contracts.
Self-employed income support
For the self-employed, financial support is available via the Self-Employment Income Support Scheme (SEISS), which provides 80% of trading profits.
It is calculated based on 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500.
A further grant for the self-employed is expected to follow covering February to April, the government has announced.
Statutory sick pay
The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the Statutory Sick Pay paid to current or former employees.
This scheme is for employers and you can claim back up to two weeks of SSP if:
- You have already paid your employee’s sick pay (use the SSP calculator to work out how much to pay)
- You’re claiming for an employee who’s eligible for sick pay due to coronavirus
- You have a PAYE payroll scheme that was created and started on or before 28 February 2020
- You had fewer than 250 employees on 28 February 2020 across all your PAYE payroll schemes
You can make more than one claim per employee, but you cannot claim for more than two weeks in total.
You must have paid your employees’ sick pay before you claim it back, but if you use an agent who is authorised to do PAYE online for you, they will be able to claim on your behalf.
Support for local businesses?
Under such schemes, businesses with a rateable value of £15,000 or under can receive financial support worth £4000, businesses with a rateable value between £15,000 and £51,000 can get £6000, and for businesses with a rateable value of over £51,000, £9000 can be provided.
Support for larger businesses
The Coronavirus Large Business Interruption Loan 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 but the scheme is only open to applications until 31 March 2021.
You can apply for a loan if your business:
- is based in the UK
- has an annual turnover of over £45 million
- has not received support under the Bank of England’s COVID-19 Corporate Financing Facility (CCFF)
You need to show that:
- your business would be viable were it not for the pandemic
- your business has been affected by coronavirus
- the loan will enable you to trade out of any short-term to medium-term difficulty resulting from coronavirus
Visit the gov.uk website for more information on this scheme.
For more information on the various types of financial support available during the pandemic, visit gov.uk.