The Government has confirmed the following ongoing support to UK businesses:
Job Support Scheme
A new Job Support Scheme will be introduced from the 1st November.
The scheme will run for six months.
- The government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand.
- Business will continue to pay the wages for the hours that staff work.
- For the hours not worked, the business and the government will each pay one third of their usual wages (capped at £697.92 per month).
- The business will pay all National Insurance contributions and statutory pension contributions.
- This means that employees will receive at least two thirds of their usual wages for the hours not worked.
To be eligible, employees must:
- be registered on your PAYE payroll on or before 23 September 2020. This means a Real Time Information (RTI) submission notifying payment in respect of that employee must have been made to HMRC on or before 23 September 2020
- work at least 33% of their usual hours – this may be increased in later months.
The Job Support scheme is open to ALL EMPLOYERS – even those which have not used the Coronavirus Job Retention Scheme (CJRS) which closes on 31 October.
The scheme will operate in addition to the Job Retention Bonus.
Extension to the reduced rate of VAT for Hospitality and Tourism
The government has extended the temporary reduced rate of VAT (5%) to tourist attractions and goods and services supplied by the hospitality sector. This relief came into effect on 15 July 2020 and will now end on 31 March 2021 across the UK.
New Payment Scheme For VAT DEFERRAL
Businesses which deferred payments to March 2021 (that were due between 20 March and 30 June 2020) can use the New Payment Scheme to spread these payments over equal instalments up to 31 March 2022.
CBILS and Bounce Back Loans
Application deadlines have been extended to November 2020.
Repayment periods have been extended from 6 years to 10 years thereby dramatically reducing the monthly repayments.