New measures to support businesses have been announced. 

Written by on September 24, 2020

The “winter economy plan” includes:

Job Support Scheme

  • Businesses will have the option of keeping employees in a job on shorter hours, rather than making them redundant.
  • Workers must work a third of their usual hours, paid by their employer as normal.
  • For the time they are not working, the government will pay a third of their usual pay, and the employer will pay a third of their usual pay.
  • The scheme will be targeted at businesses that need it most – all small and medium-sized firms – but only for big companies if turnover has fallen by a third.
  • The scheme will run for six months starting in November.
  • Firms can claim both the jobs support scheme and the jobs retention bonus.
  • A grant for self-employed workers will be extended on similar terms.

VAT Deferral

  • Businesses who deferred their VAT will no longer have to pay a lump sum at the end of March next year. They will have the option of splitting it into smaller, interest free payments over the course of 11 months.
  • Any of the millions of self-assessed income taxpayers who need extra help can also now extend their outstanding tax bill over 12 months from January.
  • The Government has also extended the 15 percent VAT cut for the tourism and hospitality sectors to the end of March next year

Bounce Back Loans

  • The application deadline for all coronavirus loan schemes – including the future fund – has been extended to 30 November.
  • Struggling businesses can choose for interest only or up to six months suspended payments with no credit rating impact.

Pay as you Grow

  • More than one million businesses that have borrowed under the Bounce Back Loan Scheme will be offered the choice of more time and greater flexibility for their repayments.
  • Lenders have been enabled to offer CBILS borrowers more time to make their repayments where needed.

Self Employment Income Support Scheme

  • The Self-Employment Income Support Scheme extension will support viable traders who are facing reduced demand over the winter months, covering 20 percent of average monthly trading profits via a government grant (extended to 30 April, 2021)

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