Posted: 24/09/20 by Wilson Browne Solicitors
Chancellor announces ‘Winter Economy Plan’
As the furlough and the Self Employed Income Support Schemes draw to a close, Rishi Sunak has today announced the following measures to support businesses and individuals in the wake of the Covid-19 crisis. Precise details are awaited and links to Government information and advice will be added to this hub in due course.
Referred to as the ‘next stage’, and the ‘next phase’ to support people’s jobs, the Chancellor stated that the economy is more likely to undergo more permanent adjustment. There is a need, he said, to support people to be in viable jobs, through this crisis. He noted that not every job could be saved, but wants to protect as many viable jobs as we can
Jobs Support Scheme
Direct support of the wages of people in work who have their need for their role depressed
1. Support Viable Jobs – employees must work at least one third of normal hours and be paid at least that by employers.
-Of the balance of the wages, the employer will pay one third, the Government will pay one third and the Employee will not receive the remaining third. Do not get confused by the reference to “must work at least a third of normal hours” the scheme is designed to “share the pain” between employer, Government and employee, subject to a minimum number of hours being worked.
2. All small and medium sizes are eligible, larger only when turnover falls
3. Open to businesses whether or not furlough has been used
4. Runs for 6 months from November
5. Businesses can claim BOTH jobs support scheme and Jobs retention bonus
Self Employed Grant
Will be extend on similar terms to the self employed as above
Bounceback loans – “pay as you grow” –
1. Loans can be extended from 6 to 10 years
2. Interest only payments can be made
3. Business can apply to suspend repayments for up to 10 months
CBILS – extend the government guarantee for up to 10 years, making it easier to give more time to repay
All deadlines for loan schemes extended to end of 2020
New successor loan guarantee program to come in 2021
1. VAT that was due in March, can be spread over 11 smaller payments with no interest
2. Self Assessment self employed can also be extended over similar term
VAT in Hospitality
Will not be increased from the reduced rate of 5% until March 31st 2021
More details will follow.
For more details following the Chancellor’s announcement today, please refer to: https://www.wilsonbrowne.co.uk/employment/?utm_source=hootsuite&utm_medium=&utm_term=&utm_content=&utm_campaign=