Chancellors Statement 24th September 2020
New Job Support Scheme and an extension to Self Employed Income Support Scheme are central to the plan, to protect jobs and help businesses.
Job Support Scheme
To be introduced from 1st November to protect viable jobs in businesses facing lower demand during winter months due to coronavirus.
Employers will pay wages to staff for the hours they work, for hours not worked the government and the employer will pay one third of their equivalent salary.
Employees must be working at least 33% of their usual working hours. The grant level will be calculated based on employees usual salary, capped at £697.92 per month.
Self Employed Income Support Scheme
An initial grant for those eligible and are continuing to actively trade but face reduced demand due to coronavirus.
Initial sum will cover three months from November to January 2021, worth 20% of average monthly profit up to a total of £1,875.
An additional second grant will be available for self-employed to cover the period from February to the end of April 2021.
The temporary 15% VAT cut for tourism and hospitality sectors will be extended to the end of March 2021.
Businesses who deferred VAT bills are given the option to pay back in smaller instalments through the New Payment Scheme. Instead of a lump sum at the end of March they will be able to make 11 smaller interest free payments during the 2021/22 financial year.
Self-assessment tax payers will be able to benefit from separate additional 12 month extension from HMRC on the Time To Pay facility. Meaning payments deferred from July 2020 and those due in January 2021 will need to be paid in January 2022.
Bounce Back Loans
Will have the burden lifted through the new Pay As You Grow flexible repayment system. This includes extending the length of the loan from six to ten years.
Interest only periods of up to six months and payment holidays will also be available.