The chancellor has now announced a further update to Coronavirus support for both businesses and individuals. This includes the introduction of a “Job Support Scheme” and further measures to support the cash flow of businesses throughout the winter.
Whilst the detail on these measures has yet to be released – the key announcements are as follows:
The furlough scheme will close as previously planned at the end of October.
Job Support Scheme
The government will now support viable jobs by allowing employers to reduce employees hours, with the government paying the difference.
- Employees must work at least 1/3rd of normal hours and be fully paid for these hours.
- The government will pay for 2/3rds of the hours cut.
- This is open to all Small and Medium sized companies, Large entities can only apply when turnover has fallen.
- This support scheme will be open for 6 months.
We will provide more detail on this scheme as it is released by the government.
Self Employed Support Scheme
The government has announced it is extending the existing self employed grant on similar conditions to the job support scheme.
Cashflow Support for Businesses
Bounceback Loans / Coronavirus Business Interruption Loans
The deadline for applying for these loan schemes has been extended to the end of this year.
Loans can now be extended from 6 years to 10, reducing repayments.
Businesses who are struggling will be able to apply for interest only repayments and can apply to suspend repayments for up to 6 months.
Coronavirus Business Interruption Loans
The government guarantee has also been extended up to 10 years
VAT deferred this year was due for repayment by March 2021. This can now be spread to 11 smaller repayments with no interest due.
Self-Assessment Tax Repayments
Self-assessment tax payments can now be spread over 12 months from next January
Hospitality and Leisure
The VAT rate cut has now been extended until 31 March 2021.
As more detail is released, we will continue to update you all on the key measures introduced by government. But in the meantime, please do not hesitate to contact us if you require advice.
Based in Woking, Hamlyns is a different kind of Chartered Accountants. We provide accounts, audit and tax services to a number of businesses and individuals across Surrey and the UK.