Under the changes announced yesterday to National Insurance rates, both employers and employees will each be taxed an additional 1.25%. In his speech in parliament Boris Johnson’s reason for the
Furlough Scheme Extended and Further Economic Support announced as second lockdown commences.
As we now know, from Thursday 5th November we will go back into a second National lock down which will last until at least the 2nd December. All non-essential retailers and businesses will close including pubs, hairdressers and gyms.
1. The Furlough Scheme has been extended until December.
The level of the grant will mirror levels available under the CJRS in August, so the government will pay 80% of wages up to a cap of £2,500 and employers will pay employer National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work.
2. Grants for businesses that will have to close as follows:
- For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
- For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
- For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks
3. Mortgage Holidays
Mortgage payment holidays will no longer end today. Borrowers who have been impacted by corona virus and have not yet had a mortgage payment holiday will be entitled to a six month holiday, and those that have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.