Government announce new Jobs Support scheme and Cash Flow Support for businesses
The new measures are:
Jobs Support Scheme (JSS)
A new Jobs Support Scheme which will help to the pay wages of workers.
- An employee must work at least one third of their normal hours while the employer and government will cover the rest.
- The level of grant will be calculated based on an employee's usual salary, capped at £697.92 per month. By way of an example an employee working 33% of their hours will receive at least 77% of their pay, 22% paid by the Government and 55% paid by their employer (the "worked" 33% plus 22%).
- The new scheme will run for six months from 1 November when the current furlough scheme closes.
- Business can still claim £1,000 jobs retention bonus.
- The scheme is open to all SMEs (even if they have not used the furlough scheme before).
- Larger businesses must show their turnover has fallen during the pandemic.
Pay as you Grow
- Coronavirus Business Interruption Loan Scheme (CBILS) repayment terms extended to ten years.
- The Bounce Back Loan Scheme can also be extended from six to ten years and companies can ask to pay interest only payments or suspend payments for six months.
The government is also extending the deadline to all schemes until the end of next year while the schemes will be followed by a successor in 2021.
Self-Employment Income Support Scheme (SEISS)
- SEISS has been extended for 6 months.
- Initial lump sum payments covering 20% of average monthly profits, up to a total of £1,875 for the period from November to the end of January and a second, additional grant will be available for the period from February 2021 to the end of April.
- VAT for hospitality and tourism businesses will keep the lower 5 per cent rate until 31 March 2021.
More time to pay tax bills
- VAT bills due in March can be spread over 11 instalments (interest free)
- Personal tax bills can be repaid over 12 months from January 2021.
We regularly update our Coronavirus Support Hub which details all the help you need for your business and your employees.Please click here for the latest information.
We will of course keep you updated on any future developments.
If you require any assistance please contact our Tax Partners, Steve Crompton or Lucy Williams, on the details below:
Partner – Head of Tax
direct dial: 01942 292541
mobile: 07790 840394
direct dial: 01942 292543
mobile: 07807 053494