WINTER ECONOMY PLAN

For full details of the announcement visit: https://www.gov.uk/government/news/chancellor-outlines-winter-economy-plan

Rishi Sunak’s plan introduces several new support packages
-the principle ones being:

  • New Job Support Scheme
  • Extension of Self Employed Income Support Scheme

The key features of the schemes are:

NEW JOB SUPPORT
SCHEME

The aim of the scheme
is to protect viable jobs in businesses who are facing lower demand over the
winter months due to Coronavirus

  • The scheme runs for 6 months from 1 November
    2020
  • Employees must be working at least 33% of their
    normal hours to qualify for support under the scheme
  • Employers continue to pay employees for the hours
    they are working
  • In addition employers pay 1/3 of the cost of
    hours not being worked
  • The Government will pay 1/3 cost of hours not
    being worked capped at £697.29 per month

PAYMENTS UNDER THE SCHEME ARE BASED ON USUAL SALARY RATES

The scheme is open to employers even if they did not
furlough staff

The scheme sits alongside the Job Retention Bonus which will
be paid to employers who keep staff on past February 2021

SELF EMPLOYMENT
INCOME SUPPORT SCHEME

  • Open to those currently eligible for the
    self-employed income support scheme and who continue to trade but experience a
    fall in demand
  • An initial lump sum will be paid covering the
    period November 2020 to January 2021

The lump sum will be based on 20% of three years
average profits capped at £1,875

  • A second grant will be available to cover the
    period February 2021 to April 2021

TAX CUTS AND
DEFERRALS

  • VAT rate
    for  Tourism and Hospitality sector is
    15% until March 2021
  • Rather than pay VAT in a lump sum at March 2021
    VAT can be paid in 11 smaller payments through to March 2022
  • Self
    -assessment
  • Tax payments due at 31 July 2020 and 31 January
    2021 are deferred until 31 January 2022

 EXTENSION TO CORONAVIRUS LOAN SCHEMES

  • Bounce back loans-repayment period up from
    6years to 10 years
  • Interest only periods of 6 months
  • Payment holidays available
  • Coronavirus Business Interruption Loan Scheme
    repayment period up from 6 years to 10 years
  • Application periods for loan schemes extended

If you need further help with these matters please contact us on 0121 758 5013

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Written by Finley T.