July 2021: Updates to Covid Support Schemes
- The Job Retention Scheme (furlough scheme) is now being wound down. From 1st July the level of grant reduces to 70% of salary for hours not worked, and from 1st August to 60%. Employers will be required to top up furlough pay to 80% during these months. The scheme is due to close down fully on 30th September.
- A 5th Self-Employment Income Support Scheme grant has been announced however the full grant based on 80% of average trading profits will only be available to businesses who can show that turnover has reduced by 30% or more. Details of how this turnover test will be applied have yet to be announced. Sole traders with a turnover reduction of less than 30% will receive a smaller grant, based on 30% of average trading profits. Applications expected to be open in late July.
- Applications for ‘bounce back loans’ have now closed, with the scheme being replaced by the ‘Recovery Loan Scheme’. This new scheme provides Government backed loans through most UK banks, but terms and interest rates are more in line with standard commercial loans.