Guidance for delivery and collection of vehicles

The BVRLA has today published Guidance for vehicle collection, delivery, distribution, storage and technical services.

The 9-page document was written by the Finance and Leasing Association with contributions from the BVRLA, National Association of Motor Auctions and the Vehicle Remarketing Association.

The short guide, which reflects Government guidance as at 1 June 2020, is intended to clarify the requirements that apply on vehicle and parts collections, delivery and distribution, storage and technical services.

Government webinar on working safely in offices

The BVRLA is reminding members of the free webinars being hosted by the Department for Business Energy and Industrial Strategy on working safely.

Tomorrow, Tuesday 2 June, there is an hour-long webinar providing advice on how to work safely in offices or similar indoor environments. The webinar starts at 11am and members can register to attend here.

Chancellor extends support for businesses

During his announcement on Friday, the Chancellor Rishi Sunak confirmed an extension to the Self-Employment Income Support Scheme and announced three changes to the job retention scheme:

• From 1 July 2020, the scheme will be more flexible enabling employers to bring previously furloughed staff back part time and still receive a grant for the time they are not working.
• From 1 August 2020, employers will have to start contributing to the wage costs of furloughed staff and the contribution will gradually increase in September and October.
• The scheme will close to new entrants from 30 June. The final date by which an employer can furlough an employee for the first time will be 10 June.

The BVRLA had been calling for flexible furloughing during discussions with BEIS and HM Treasury and although this flexibility is not coming as early as the association would have liked, we are pleased to see the Chancellor bringing the date forward to July, from the originally planned date of August. This will help many members across all sectors.

Part-time furloughing explained

From 1 July 2020, the government will continue to pay 80% of wages for furloughed staff covering any of their normal hours they do not work up until the end of August. This flexibility in the Coronavirus Job Retention Scheme comes a month earlier than previously announced to help peo! ple get back to work.

Employers will decide the hours and shift patterns their employees will work on their return and will be responsible for paying their wages in full while working. This means that employees can work as much or as little as the business needs, with no minimum time that they can furlough staff for.

Any working hours arrangement agreed between a business and their employee must cover at least one week and be confirmed to the employee in writing. When claiming the CJRS grant for furloughed hours, they will need to report and claim for a minimum period of! a week. They can choose to make claims for longer periods such as on monthly or two weekly cycles if preferred. Employers will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.

If employees are unable to return to work, or employers do not have work for them to do, they can remain on furlough and the employer can continue to claim the grant for their full hours under the existing rules.

Employer contributions explained

From August, the government grant provided through the Coronavirus Job Retention Scheme will be slowly tapered with employers being asked to contribute more over time.

• In June and July, the government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICs) and pension contributions for the hours the employee doesn’t work – employers will have to pay employees for the hours they work
• in August, the government will continue to pay 80% of wages up to a cap of £2,500 but employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs that they would have incurred if the employee had not been furloughed
• in September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500
• in October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500
• the cap on the furlough grant will be proportional to the hours not worked.

Self-Employment Income Support Scheme

The Chancellor also announced plans to extend the Self-Employment Income Support Scheme (SEISS) for those people whose trade continues to be, or is newly, adversely affected by COVID-19.

Eligible self-employed people will be able to claim a second and final grant in August; this will be a taxable grant worth 70% of their average monthly trading profits for three months, paid out in a single instalment and capped at £6,570 in total.

The eligibility criteria for the second grant will be the same as for the first grant. People do not need to have claimed the first grant to claim the second grant. Claims for the first SEISS grant, which opened on 13 May, must be made no later than 13 July.

Eligible self-employed people must make a claim before that date to receive the first SEISS grant (a taxable grant of 80% of their average monthly trading profits, paid out in a single instalment covering 3 months' worth of profits, and capped at £7,500 in total.

Guidance on what you can and cannot do

The Government has updated its guidance on what you can and cannot do to include the changes that came into effect today. This includes the fact that you can meet in a group of up to six people, including you and any carers, as long as you practise strict social distancing.

The BVRLA website is updated daily with Covid-19 Business advice and information

As well as receiving these Covid-19 Bulletin emails, members are also reminded that the BVRLA website contains a dedicated Covid-19 Business Advice section hosting all the latest information as well as the previous Covid-19 Bulletins that have been issued since they launched on 17 March.

If you have a colleague who would also like to receive the BVRLA Covid-19 Bulletin, they should email BVRLA Communications Manager Andrea Davies at andrea@bvrla.co.uk