Against a backdrop of rising Covid infections and a reduction in government support, will SMEs be able to survive cashflow pressures and Covid debt burdens? Much needed help may be on the way as the CBI and financial services sector call for change.
Wayne Thomas, partner at Bates Weston recaps the imminent changes to CJRS and stresses the need to plan ahead.
Summary of the main changes planned for the furlough scheme, ahead of detailed guidance expected from the Government on 12 June
Changes to Coronavirus Job Retention Scheme. Flexible Furlough scheme introduced from 1 July, employers to gradually increase their contribution to wage costs beginning with NI and employer pension contribution costs and rising to 20% by October when the scheme will end. Self Employment Income Support Scheme extended, now ending in August, with a single payment of up to £6,570 to cover June, July and August.
Calls for parity for the self-employed with those furloughed. SEISS v CJRS
Plans to reopen retail in a safe and secure manner providing the Government’s five key tests are met, retailers conduct risk assessments and comply with COVID-19 Secure guidelines for shops and branches.