The Chancellor, Rishi Sunak, made an announcement on 24 September 2020 as the Government seeks to further its support for businesses hit by the coronavirus pandemic.
Job Support Scheme
- Supports viable jobs – employees must work at least 1/3 of their normal hours
- The scheme will cover 2/3 of their pay
- Employees working 33% of their hours will receive at least 77% of their pay
- Supports SMEs – and larger businesses if their turnover has fallen
- Open to employers across UK, even if they haven’t used the furlough scheme
- Will last 6 months starting in November 2020
- Employers can apply for this on top of the job retention bonus
Self employed grant
- This will be extended on similar terms and conditions to the new Job Support Scheme
Coronavirus Business Interruption Loan Scheme (CBILS)
- HMG guarantee on CBILS & BBLS extended to 10 years.
- Extending application deadline for CBILS, CBILS & BBLS until 30th November 2020.
- Future Fund also extended until 30th November 2020.
- The Chancellor will launch successor “Loan Guarantee Scheme” which is due to start on 21st January 2021.
- Coronavirus Business Interruption Loans (CBILS) & The Bounce Back Loan Scheme (BBLS) have had the loan terms extended to maximum 10yrs term from 6yrs. The larger scheme – Coronavirus Larger Business Interruption Loan Scheme (CLBILS) remains unchanged.
- On The Bounce Back Loan Scheme – Businesses can now choose to make interest only repayments “pay as you grow” and can also suspend repayments for 6 months, if the business is “in difficulty.”
- If companies take up the option above, the Chancellor has said it they will not be penalised and their credit ratings will remain unchanged.
Extension of VAT cut for hospitality sector
- For those in the hospitality and tourism sector, the 5% VAT rate will remain in place until 31 March 2021
VAT deferral payment scheme
- Businesses that deferred VAT due in March to June 2020, rather than paying in full at the end of March 2021, will now be able to choose to make 11 equal instalments over 2021-22
- All businesses which took advantage of the VAT deferral can use the new payment scheme
- Businesses will need to opt in, but all are eligible
- HMRC will put in place an opt-in process in early 2021
- This will end as planned
Coronavirus Job Support Scheme from November 2020