Summary of the main points:
- Job Support Scheme – New grant scheme to operate from 1st November 2020 for 6 Purpose of the scheme is to help businesses retain employees in times of low demand by allowing the employees to recover a percentage (2/3) of the wages that they would otherwise have lost by not working. More details of the scheme will be issued by the Government in due course but in summary of the main points:
- Employees must work at least 33% of normal hours.
- Businesses must pay employees for the time they work and also 2/3 of the time for when they don’t work via payroll.
- The time NOT worked will be funded as follows:
- 1/3 by employee as lost pay.
- 1/3 by employer (2/3 initially via payroll).
- 1/3 by employers claiming the Government grant scheme
- Scheme is separate from CJRS which ends in October, so those who didn’t qualify for CJRS may potentially qualify for this scheme provided RTI submissions were made this tax year before the announcement of the scheme.
- Maximum grant capped at £697.92 per month.
- Self-Employment Income Support Scheme – To be extended from 1st November for 6 To be eligible you must have qualified for the original scheme.
- Tourism & Hospitality Sector – Reduced VAT rate of 15% until March 2021.
- VAT Payment Deferral – As a follow on to the original scheme which provided the option to defer VAT payments due between 20 March 2020 and 30 June 2020 until 5th April 2021. There is now the option to make 11 smaller interest-free payments during the 2021-22 financial year instead of a lump sum payment on 5th
- Self-Assessment Payments on Account Deferral – As a follow on to the original scheme which provided the option to defer self-assessment second payments on account due on 31st July 2020 until 31st January 2021. There is now the option to defer this payment for another 12 months until 31st January 2022.
- Bounce Back Loans / Coronavirus Business Interruption Loans – (With lender agreement) it may now be possible to extend the terms of these loans from 6 to 10 years, and potentially utilise payment holidays / interest free periods.
Preparing for BREXIT
Many of our clients have received communications from HMRC over the last year to assist them to prepare for BREXIT. However as this is a complex and new area, this article is designed to further help you to assess how these changes may impact both you and your business.
Further Economic Support
On Sunday 31st October 2020 the Government announced a number of updates to existing economic support measures. The full details of these measures are reported HERE (https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced ).
Updates to the Job Support Scheme
The Government has published detailed information about the scheme HERE (https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme )