Supporting UK Businesses
The Chancellor Rishi Sunak today outlined additional government support to provide certainty to businesses and workers impacted by coronavirus across the UK.
The package includes a new Jobs Support Scheme to protect millions of returning workers, extending the Self Employment Income Support Scheme and retaining the reduced 5% VAT for hospitality, holiday accommodation and attractions, and help for businesses in repaying government-backed loans.
Here is quick summary of what we know so far.
- Job Retention Scheme will end as planned and be replaced by the Job Support Scheme.
- 6-month scheme starting 1 November 2020.
- For employees working at least a third of their normal hours, who are being paid for that as normal.
- The government and employers will jointly increase their wages to cover two-thirds of their lost pay and the employee will keep their job.
- All small and medium-sized businesses are eligible, but larger businesses must show their turnover has fallen during the crisis.
- Employers can use it even if they have not previously used the furlough scheme it replaces.
- Self-Employed Income Support Scheme will be extended until 30th April 2021. This will continue to support viable traders who are facing reduced demand over the winter months, covering 20% of average monthly trading profits via a Government Grant.
- Pay as you grow – will give businesses more time and flexibility to repay Bounce Back Loans. More than one million business which have borrowed under the Bounce Back Loan Scheme will be offered the choice of more time and greater flexibility for their repayments.
- Bounce back loans - The application deadline for all coronavirus loan schemes have been extended to 30th November, ensuring even more businesses can benefit from Government-backed support.
- VAT Deferral – Business who deferred their VAT will no longer have to pay lump sum at the end of March next year. They will have the option of splitting it into smaller, interest free payments.
- Temporary reduced rate for VAT - The 5% temporary reduced rate of VAT for hospitality, holiday accommodation and attractions, which was due to end 31 January and return to 20%, will now be retained until 31st March 2021.
More details will be shared, on these schemes, as and when we get more information.
Specialist support from Hentons
We have specialists dealing with the specific reliefs and issues being faced by our clients. Please feel free to contact the relevant areas of expertise: