Chancellor’s Announcement 24 Sep 20 – Financial support for businesses during coronavirus (COVID-19) Headlines Winter Economy Plan / Job Support Scheme

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19?utm_source=c801e45a-9032-4f8a-8c03-237b04184af6&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

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