Breaking News! - Chancellors Winter Plan:
The Chancellor has just announced his ‘Winter Plan’ with the following support measures:
As planned, the furlough scheme will close on 31st October.
Job Support Scheme
To replace the furlough scheme the Government will introduce a new ‘Job Support Scheme’ starting on 1st November:
• Employees must work a minimum of 33% of their normal hours
• The Government and Employer will pay another 33% each
Self-Employment Grant (SEISS)
• The SEISS is to be extended on similar terms to the new job support scheme
Bounce Back Loans and Coronavirus Business Interruption Loans
• BBLs will be ‘Pay as you Grow’, with loans extended 6-10 years which will allow monthly payments to be halved.
• Interest only payments will be allowable for a period.
• Payments will be able to be suspended for 6 months at no negative effect to credit ratings
• CBILs will be Government guaranteed for 10 years
• The deadline to apply for loans is being extended to 31st December
VAT and Tax Deferrals
• VAT payments that were deferred to 31st March will be able to be spread over 11 months at no interest
• Self-Assessment payments from July deferred to January will be able to be spread over 12 months from January
Hospitality and Tourism VAT
• The VAT reduction from 20% to 5% for hospitality and tourism is being extended to 31st March
I will be reading the full details when published and be updating our clients with a full overview ASAP.
In the interim if you have any queries or concerns please don't hesitate to drop me a line.
Steven Hillman ACA
Tel: 01934 444100