Here’s a quick summary of The Chancellor announcement today in The House of Commons:
Employed:
- The job support scheme will start from 1st November and runs to the 30th April 2021
- It will support viable jobs placement and employees must work at least a third of their normal working hors and be paid by the employer for those hours
- The normal hours NOT worked will be topped up 1 third by the government and 1 third by the employer
- Employees do not have to have been furloughed to be able to take advantage of this scheme
Self Employed:
- The SEISS is being extended to another 2 grants
- The first extended payment will be for the period November to January and will be worth 20% of average profits up to a capped amount of £1,875
- The second payment may be adjusted and we have to await further confirmation on this by The Chancellor
Business Loans – CBILS and Bounce Back
- The Chancellor announced a Pay as you grow system for the bounce back loan whereby the 6 year repayment term has now been extended to 10 year, thereby reducing monthly repayment amounts for businesses
- An interest only repayment period of 6 months for those in financial difficulty is available
- Repayment holidays are also available for struggling businesses
- Applications for new loans are now open until the end of November
Cash flow
- VAT that has been deferred until March 2021 can now be repaid in interest free instalments over the next 11 months
- Self-assessment tax bills can be spread over 12 months from January 2021.
Industry
- The VAT rate reduction from 20% to 5% for the hospitality and leisure industry has been extended further to end March 2021
Business Accountancy Services Hertfordshire