Rishi Sunak has set out new measures to help workers and businesses hit by new coronavirus restrictions. Here is a summary of the main points.
Job Support Scheme
Under the scheme, the government will subsidise the pay of employees who are working fewer than normal hours due to lower demand
Workers must do at least a third of their normal hours
Employers will pay staff for the hours they work
The government and the employer will pay a third each for the hours they can't work
It means someone working a third of their hours would receive 77% of their 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 and replaces the "furlough" scheme
It means the government will pay a maximum of 22% of someone's wages, down from 80% at the start of the furlough policy
Support for the self-employed
The chancellor is extending the self-employed grant on similar terms to the Job 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 may be available to the self-employed to cover February 2021 to the end of April, depending on circumstances
Further points
Bounce back loans will be extended from 6 years to 10
CBIL loans will also be able to be extended up to 10 years
The deadline for applying for the loans will be extended to the end of November
The 15% emergency VAT cut for the tourism and hospitality industries will be extended from January 2021 to 31 March
Businesses who deferred their VAT bills will be able to pay back their taxes in 11 smaller interest-free instalments
Self-assessment income taxpayers who need to will be given more time to pay
For more information and advice, get in touch with Catherine today. Give her a call on 01423 431889 or email catherine@bctaccountants.co.uk.
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