Winter 2020 Government Plans
Following the Chancellors announcement today 24th September 2020, we have summarised the key points for you. We are continuing to monitor all updates so feel free to contact us if you need any help or clarification.
Job Retention Scheme
The Coronavirus Job Retention Scheme will be ending on 31 October 2020 as initially planned. This is to be replaced by a Jobs Support Scheme. The JSS will be effective from 01 November 2020, and is for employees who will be working at least one third of their normal working hours.
The government and employer will jointly cover two-thirds of the lost pay. The employer will not be allowed to issue redundancy notices to anyone on the Job Support Scheme Employers will still be able to claim for the Job Retention Bonus in February 2020 if they are eligible and qualify.
Employers who previously did not qualify for the Job Retention Scheme, will be eligible for the Job Support Scheme. This will run for 6 months.
Self Employed
The existing grant for self-employed individuals is also being extended on similar terms as the Job Support Scheme. We are waiting for further details to be announced on this.
Business Loans
Bounce back loan repayment terms are being extended from 6 years to 10 years, thereby reducing the monthly repayments, once they start. Businesses can also switch to “interest only” payments, or suspend repayments if they are in “real trouble” without credit ratings being affected. We are still waiting for further clarification as to what the criteria for “real trouble” is.
The government guarantee on the Coronavirus Business Interruption Loans will be extended for 10 years and a new guarantee will be announced in January 2021
Tourism and Hospitality
The current VAT reduction for the tourism and hospitality sectors will remain in place until 31 March 2021
The deferred VAT liabilities which were due between 23 March 202 and 30 June 2020 will no longer have to be paid in a lump sum by 31 March 2021. Businesses will have the option of splitting their payment into smaller, interest free payments over 11 months.
Tax
Individuals who have a personal tax bill of up to £30,000 will be able to set up a payment plan for 12 months up to January 2022. However, you will need to do this by contacting HMRC yourself, which is known to be challenging in itself.
Finally, we would like to thank you for your continued support and we look forward to assisting you through the uncertain times ahead. If you do require any assistance with the new schemes advised, please do not hesitate to get in touch with a member of the team for a tailored quote to cover your needs.