COVID-19 - support grants and loans update
This week has seen a flurry of changes to the various government support schemes. We have summarised a few in this article.
Coronavirus Job Retention Scheme (CJRS)
The HMRC portal – where you formally register your claim - should be live as from 20 April 2020. HMRC have published a “user” guide to the claims process. In the general information about the scheme the guide says:
- To be eligible for CJRS an employer must agree with the employee that they are a ‘furloughed worker’.
- Employees must be notified that they have been furloughed.
- Employees must be furloughed for a minimum of three weeks.
- The employee cannot do any work for the employer that has furloughed them.
- You can claim 80% of wages up to a maximum of £2,500 per month per furloughed employee.
- A separate claim is needed for each PAYE scheme.
- You can only claim for furloughed employees that were on your PAYE payroll on or before 19 March 2020.
- An RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 19 March 2020.
- You must have a UK bank account.
The Chancellor has also confirmed that due to the extension of the lock-down period for a further three weeks, claims can be extended to 30 June 2020.
Coronavirus Business Interruption Loan Schemes (CBILS)
A reminder that banks cannot ask for a personal guarantee if the loan is below £250,000.
For loans over £250,000, personal guarantees will be limited to 20% of any amount outstanding on the CBILS loan after any recoveries from business assets have been considered.
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