Chancellor’s Announcement 24 Sep 20 – Financial support for businesses during coronavirus (COVID-19) Headlines Winter Economy Plan / Job Support Scheme
Jobs support scheme
§ Under the scheme, the government will subsidise the pay of employees who are working fewer than normal hours due to lower demand
§ It will apply to staff who can work at least a third of their usual hours
§ Employers will pay staff for the hours they do work
§ For the hours employees can’t work, the government and the employer will each cover one third of the lost pay
§ The grant will be capped at £697.92 per month
§ All small and medium sized businesses will be eligible for the scheme
§ Larger business will be eligible if their turnover has fallen during the crisis
§ It will be open to employers across the UK even if they have not previously used the furlough scheme
§ The scheme will run for six months starting in November 2020
Support for the self-employed
§ The chancellor is extending the self-employed grant on similar terms to the jobs support scheme
§ A grant will be available to those eligible for the Self Employment Income Support Scheme Grant
§ The grant will cover three months’ worth of profits for the period from November to the end of January
§ It will cover 20% of average monthly profits up to a total of £1,875
§ A further grant will be available to the self-employed to cover February 2021 to the end of April
Business loans
§ Bounce Back Loans will be extended, if you apply for it, from six years to 10, cutting monthly repayments by nearly half
§ Coronavirus Business Interruption Loan Scheme lenders will also be able to extend the length of loans from the current maximum of six years to 10 years
§ The chancellor is also extending the deadline for the government’s coronavirus loan schemes to the end of November
§ Businesses struggling can choose to make interest only payments for six months and those “in real trouble” can apply to suspend repayments altogether for six months
§ Businesses will not see their credit rating fall as a result, the chancellor says
Taxes
§ The 15% emergency VAT cut for the tourism and hospitality industries will be extended from January 2021 to 31 March
§ Business who deferred their VAT bills will be able to pay back their taxes in 11 smaller interest-free instalments
§ Self-assessment tax payers will be able to defer tax payments to January 2022
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