Today the Chancellor outlined the plans to help businesses through the next 6 months and beyond. Here is a summary of what we know so far. we will keep you up to date as more is announced.
Job Support Scheme
Designed to keep more people in employment the scheme allows for reduced hours to be worked and will be supported by the government and employers alike. Employees must still work a minimum of 33% of their normal hours. For the hours not worked HMRC will top up a third and the employer will pay a third.The grant will be capped at £697.52 per month.
Employees must be on the payroll at 23 September 2020 and have been included on an RTI submission made prior to that date.
The scheme will open on 1 November 2020 and be open to the end of April 2021.
Extension to the Self Employed Income Support Scheme
The extension will provide two grants and will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three- month period.
The first grant will cover a three-month period from the start of November until the end of January. The Government will provide a taxable grant covering 20 per cent of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total.
The second grant will cover a three-month period from the start of February until the end of April. The Government will review the level of the second grant and set this in due course.
Tax and loan deferments
Further to deferrals already in place HMRC will be offering a longer period to pay VAT deferred to March 2021 allowing payments over 11 months. Self employed tax deferred from July 2020 and liabilities that would normally fall due in January 2021 can be deferred using a self service “time to pay” service to defer payment until January 2022.
The reduced VAT rate of 5% is to be extended to the end of March 2021.
Both Bounce Back loans and CBILS borrowing will have the option to extend the repayments from 6 to 10 years with options for payment holidays which will drastically reduce the repayments required.
The deadline for making a loan application has now been extended to 30 November from the 4th.
Full. details of all these schemes are on our website https://www.maynardjohns.com/support-for-businesses-during-coronavirus/