COVID-19 – 6 April – Clarification on Furlough and CBILS - Wright Vigar
 In Advice, Blog, News

As more detail has been announced regarding the coronavirus job retention scheme and the coronavirus business interruption loan scheme, our experts provide you with the latest updates.

Update to the Coronavirus Business Interruption Loan Scheme (CBILS)

To give more smaller businesses across the UK to access the funding they need during this crisis, the government have significantly expanded this scheme and made changes to the scheme’s features and eligibility criteria.

The new features are:

  • For facilities under £250k, personal guarantees of any form cannot be taken.
  • For facilities above £250k, personal guarantees may be required, but recoveries under these are capped at a maximum of 20% of the outstanding balance of the CBILS facility after the proceeds of business assets have been applied.
  • A Principal Private Residence (PPR) cannot be taken as security to support a personal guarantee or as security for a CBIL backed facility.
  • Even if lenders consider there to be sufficient security, CBILS can now support lending for all facilities, including those above £250k.

Click here for more information on the British Business Bank website.

Update to the Coronavirus Job Retention Scheme (CJRS)

The government has recently published further guidance on this scheme, clarifying and changing some of the aspects that we want to make you aware of.

The new guidance indicated:

  • Employees can start another job whilst on furlough leave.
  • As well as reclaiming basic salary, an employer can reclaim 80% of compulsory commission back from HMRC.
  • Employers can now reclaim 80% of fees from HMRC.
  • The 80% reimbursement does not include non-monetary benefits.
  • Directors can be furloughed and still perform their statutory duties, but no other work.
  • Employees can be furloughed multiple times, subject to each period being the minimum three-week period.
  • Employers must notify employees of their furlough status in writing and keep a record of this for five years.
  • To claim the Job Retention Scheme Grant, employers must be enrolled for PAYE online – this can take up to 10 days.

Click here for more information on the.GOV.uk website.

 

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