COVID-19: Further extension to the UK’s Job Support Scheme

Proskauer - Tax Talks
Contact

Proskauer - Tax Talks

As coronavirus infection rates rise and restrictions tighten across the UK, the UK Chancellor has extended the Job Support Scheme (again). Last week we reported on the extension of the Scheme to businesses legally required to close under tier 3 of the alert system (https://www.proskauertaxtalks.com/2020/10/covid-19-extension-of-the-uks-job-support-scheme/). Yesterday (22 October) the UK Chancellor announced the following updates:

  • Employees must work a minimum of 20% of their usual hours per month (previously 33%) and the employer’s contribution for non-worked hours is 5% (previously 33%), capped at £125 per month.
  • The government will pay 61.67% of hours not worked, up to a cap of £1,541.75 per month (for businesses in tier 3 forced to close the government will pay 67%) so that employees will earn at least 73% of their usual salary (based on the cap of a monthly reference salary of £3,125).
  • The support available to the self-employed (previously reported by us https://www.proskauer.com/blog/uk-chancellor-announces-winter-economy-plan) has been increased with the taxable grants now covering 40% of average monthly trading profits over a three month period (previously 20%) with a maximum grant of £3,750.
  • Additional funding is being provided to Local Authorities to support businesses in tier 2 areas which have been severally impacted (but are not legally required to close) by the restrictions on household mixing. The level of funding received by the Local Authorities will depend on the number of hospitality, hotel, B&B and leisure businesses in their area and it is assumed that such businesses receive grants equivalent to 70% of the grants which tier 3 businesses required to close are eligible.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Proskauer - Tax Talks | Attorney Advertising

Written by:

Proskauer - Tax Talks
Contact
more
less

Proskauer - Tax Talks on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.