Chancellors Winter Plan

Breaking News! - Chancellors Winter Plan:

The Chancellor has just announced his ‘Winter Plan’ with the following support measures:

Furlough Scheme

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.

Best,

Steve

Steven Hillman ACA
Chartered Accountant
Tel: 01934 444100