In light of the tighter restrictions being imposed across the UK, the below additional grants, as well as amendments to the schemes which we detailed in update 11 (part 1 and 2) have been announced:

New Grants Scheme
This is aimed at those businesses who have been, or will be impacted due to Tier 2 and Tier 3 restrictions. It is a point to note that grants can be applied for by those businesses in Tier two, even if they aren’t legally closed.

Local authorities are to be provided with funding, and they will be responsible for issuing direct cash grants, so if you believe your business is eligible, it would be best to contact your local council directly.

Tier 2 Businesses
For businesses to be eligible to apply they must meet the following criteria:

• Have a business premise based in a Tier 2 area
• Provide a service of hospitality, leisure or accommodation

These businesses will be eligible to apply for a direct grant worth up to £2100, for every month the restrictions apply.

Tier 3 Businesses
For businesses to be eligible to apply they must meet the following criteria:

• Have a business premise based in a Tier 3 area
• Provide a service of hospitality, leisure or accommodation

These businesses will be eligible to apply for a direct grant worth up to £3000, for every month the restrictions apply and backdated to August 2020.

Job Support Scheme (JSS) Amendment
It should be noted that the criteria for eligibility for JSS has not changed, only the level of funding.

If a business is legally required to close, the Government will cover the full cost of employers paying their employees 2/3 of their salary, where they cannot work for a week or more.

Where a business can remain open the employee must now work at least 20% of their usual hours (previously 33% of their usual hours)

Additionally, the employer contribution for the hours not worked will be reduced to 5% (previously 33%)

The use of this scheme will not impact the ability to claim the grants outlined above.

Self-Employment Income Support Scheme Extension (SEISSE) Amendment
It should be noted that the criteria for eligibility for SEISSE has not changed, only the level of funding.

It is assumed at this point that there will still be two grants available; one covering the period from November 2020 to January 2021, and a second covering the period from February 2021 to April 2021.
Initially it was announced that HMRC would provide a taxable grant covering 20% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total.

This has now increased to a taxable grant of 40% of average monthly trading profits, capped at £3750

Yet again, for those who run limited companies and are Directors taking their income as a mixture of salary and dividends, no targeted schemes have been announced, but we will continue to update you of any changes.