- Farrell & Farrell
Winter Economy Plan
The Chancellor has today announced a number of support measures for businesses for the coming winter months as follows:-
Coronavirus Job Retention Scheme to end as planned on 31 October 2020.
New Job Support Scheme to be introduced wef 1 November 2020 lasting for 6 months. Available for all SME’s. Restrictions on Larger businesses. Employees are guaranteed a minimum of 77% of their normal wages as follows:-
Employees must work a minimum of 33% of their normal hours paid by the employer.
The Government and employer will then each cover 1/3 of the remaining normal wages.
Self Employed Income Support Scheme extended to 30 April 2021 on similar terms to the Job Support Scheme. Support will be made available via a government grant.
Reduced VAT rate of 5% for tourism and hospitality sectors extended to 31 March 2021
Deferred VAT liabilities will not need to be repaid in a lump sum by March 2021. Option to repay over 11 months interest free.
“Pay as you Grow” scheme – increased time to repay Bounce Back Loans from 6 years to 10 years reducing payments. Option to switch to interest only repayments or suspend repayments for up to 6 months if they are really struggling.
Extension to deadline for all Coronavirus Loan Schemes to 30 November 2020
Coronavirus Business Interruption Loan Scheme – government guarantee to be extended to 10 years. New successor loan guarantee to be announced in January 2021.
Detailed guidance on the above measures to follow.