Business and Self-Employed Government Support Update (January7, 2021)

Additional business support in light of new national lockdown in England.

On 5th January, 2021 and in light of the latest national lockdown in England, the Chancellor of the Exchequer announced a £4.6bn support package for businesses in the retail, hospitality and leisure sectors.

In practice, the majority of this package will take the form of business property grant funding for eligible closed businesses in England, while since business support responsibilities are devolved the Scottish Government will receive £375m, The Welsh Senedd £227m and the Northern Ireland Assembly £127m as part of funding already guaranteed through the UK government. Details of the business support to be made available by the governments of the devolved nations will be available on the respective government websites in due course.

In the meantime, the following one-off top up grants will be available to businesses in England which are legally required to close and which cannot operate effectively remotely.

The grants are most likely to be available to PGA Members who are golf club managers, or who own golf facilities or high street outlets, where their businesses are required to pay business rates.

CLICK HERE to find out more and how to make an application.

Self Employed Income Support Scheme (“SEISS”) alert

The SEISS Grant Extension was updated on 5th November, 2020 to provide a third grant of 80 per cent of a self-employed individual’s average monthly trading profits, computed in line with the scheme’s details up to a maximum of £2,500 per month. The third grant covers the three months from December 2020 to January 2021, with the total maximum grant available being £7,500, and support via the SEISS is available in all four nations of the UK.

Even if Members did not apply for the first and second grants last year, they can still apply for the third grant if they meet the eligibility criteria. To do so, they specifically must have traded in a self-employed capacity in both the tax years ended 5 April 2019 and 5 April 2020, and they must have submitted their 2019 tax return by no later than 23 April 2020.

For Members who are eligible for support through the SEISS third grant, the deadline for applications for the funding is 29 January 2021.

CLICK HERE to view full details on eligibility and the application process.

The government has extended the SEISS through to the end of April 2021, and a fourth grant is expected to be made available early in the year covering the period from February to April. The details of the fourth grant are not yet available.

Coronavirus Job Retention (Furlough) Scheme alert

The furlough scheme has also been extended until the end of April 2021, and is of particular relevance to those Members who have employees or who are themselves employees of their own limited company business. In parallel with the SEISS, the government will fund up to 80% of a furloughed employee’s wages, up to a maximum of £2,500 per month.

CLICK HERE to view full details of eligibility for the scheme.

It is important to note that:-

• Claims for furlough days in December must be made by 14 January 2021; and
• Claims can no longer be submitted for claim periods ending on or before 31 October 2020.