FOB Chief Executive’s Weekly News for 2nd November 2020

Dear All,

Detailed below is a fairly short Weekly News/ Covid Update for 2nd November.

Have a good week.

Gordon Polson

Chief Executive – Federation of Bakers Ltd

EU Exit: This is a link to an industry led website giving guidance on EU exit EU Exit Food Hub

 

 

Job Retention Scheme: The Prime Minister said the government’s Coronavirus Job Retention Scheme (CJRS) – also known as the Furlough scheme – will remain open until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the current scheme, which ends today. This means the extended furlough scheme is more generous for employers than it was in October.

ttps://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced

 

 

Trading and labelling organic food from 1 January 2021

See updated guidance for how the rules for producing, processing, labelling and trading organic food will change from 1 January 2021

 

Agriculture Bill 

MPs will consider Peers’ further amendments to the Agriculture Bill, adopted on 20 October, when the Government was defeated on 2 major amendments, on 4 November.  The 2 key amendments were amendment in lieu (16B) proposed by Lord Grantchester, which would require imports into the UK to meet UK food and animal welfare standards, and (18B) proposed by Lord Curry of Kirkharle, which sought to strengthen the role of the Trade and Agriculture Commission.  The Bill’s progress can be followed on its website.

Family Food 2018/19

The Government has published its latest annual report providing detailed statistical information on purchased quantities, expenditure and nutrient intakes derived from food and drink consumed in the household and eating out. Around 5000 households in the UK are surveyed annually.  Data is collected using self-reported diaries of all purchases over a 2 week period. Where possible quantities are recorded in the diaries but otherwise estimated. Energy and nutrient intakes are calculated using standard nutrient composition data for each of some 500 types of food. Current estimates are based on data collected in the “Family Food Module of the Living Costs and Food Survey”. In 2018/19 the percentage of spend on food and non-alcoholic drinks for the average UK household was 10.6% of household income, the same as in 2017/18.  For households with the lowest 20% of income, the percentage of spend on food is the second highest at 14.7% in 2018/19, after housing, fuel and power.

 

 

COVID-19 Support

Dear customer,

In light of the increased restrictions needed to curb the coronavirus pandemic, the UK government is introducing additional economic measures to support you and your employees.

Latest changes that may impact you

The Coronavirus Job Retention Scheme (CJRS), which was due to end on 31‌ October, will now be extended, with the UK government paying 80% of wages for the hours furloughed employees do not work, up to a cap of £2,500 for periods from 1 November.

You will need to pay all employer National Insurance Contributions (NICs) and pension contributions. You can choose to top up your furloughed employees’ wages beyond the 80% paid by the UK government for hours not worked, but you are not required to do so.

There will be no gap in support between the previously announced end date of CJRS and this extension.

For more information, go to GOV‌.UK and search ‘furlough scheme extended’.

How will it work?

You will have flexibility to ask your employees to work on a part-time basis and furlough them for the rest of their usual working hours or furlough them full-time. You will have to cover their wages for any hours they work as well as all employer National Insurance and employer pension contributions.

You will be able to claim either shortly before, during or after running your payroll. There will be a short period initially when the online claims service will be closed while we update the system, and you will be able to claim in arrears for that period.

Further details will be provided in the next few days. Please do not call us for more information in the meantime – we will let you know via email as soon as this is available.

How to check if your employees are eligible

You can claim for employees who were on your PAYE payroll on 30‌ October 2020. You must have made a PAYE Real Time Information (RTI) submission to HMRC between 20‌ March 2020 and 30‌ October 2020, notifying a payment of earnings for that employee.

If employees were on your payroll on 23‌ September‌ 2020 (i.e. notified to HMRC on an RTI submission on or before 23 September) and were made redundant or stopped working for you afterwards, they can also qualify for the scheme if you re-employ them.

Neither you nor your employee needs to have previously used the CJRS. Further details on eligibility will be provided in the next few days.

What you need to do now

  • Check if your employees are eligible for the scheme, based on the information above.
  • Agree working hours with your employees, so they know if they are furloughed fully or part-time during November.
  • Keep the records that support the amount of CJRS grant you claim, in case HMRC need to check it. You can view, print or download copies of your previously submitted claims by logging onto your CJRS service on GOV‌.UK.‌

Job Support Scheme

The new Job Support Scheme, which was due to start on Sunday 1 November, has now been postponed.

Further support

Guidance and live webinars offering you more support on changes to CJRS, and how they impact you, are available to book online – go to GOV‌.UK and search ‘help and support if your business is affected by coronavirus’.

Our phone lines and webchat remain very busy, so the quickest way to find the support you need is on GOV‌.UK. This will leave our phone lines and webchat service open for those who need them most.

Protect yourself from scams   

Stay vigilant about scams, which may mimic government messages as a way of appearing authentic. Search ‘scams’ on GOV‌‌.UK for information on how to recognise genuine HMRC contact. You can also forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 6‌0599.

I hope this information helps you and your business. We’ll continue to keep you updated on scheme developments over the coming weeks.

Yours faithfully

Jim Harra

Chief Executive and Permanent Secretary – HMRC