Autumn News Update
The Autumn budget has been scrapped, so we will wait until next year to here of any major changes to taxes.
The (flexible) furlough scheme will end on 31 October 2020 as planned.
New Job Support Scheme
The new scheme is a big step back in the level of support offered to business. Employees do not need to have been previously furloughed to qualify.
- The scheme will run for six months from 1st November 2020.
- Employees must work at least 33% of their normal hours to be eligible.
- The remaining hours not worked will be paid for by the government and employer, with each contributing 1/3rd of the wages not earned (and the employee receiving 77% overall of full pay.)
- This means that an employee who works 33% of their normal hours would receive 77% of their normal pay because:
- the employer will pay 33% of the wages for the normal hours worked;
- the employer will make a payment of equivalent to 1/3 of the wages for the remaining hours not worked (22.3%); and
- the government will also make a payment equivalent to 1/3 of the wages for the remaining not worked (22.3%).
Level of grant will be based on usual salary and capped at £697.92 per month
Bounce Back Loan and CBILS
- BBL will be “pay as you grow”, allowing an extension from 6 to 10 years for repayment
- Interest only payments will be allowed for a period
- A payment holiday may be possible with no effect on credit rating
- The application deadline extended to 31 December 2020.
VAT and Tax deferral
VAT deferred payments due 31 March 2021 can be spread over 11 smaller payments interest free
Deferred July 2020 self assessment payments due 31 January 2021 can be spread over 12 months from January 21 , interest free.
Hospitality / Tourism VAT
The reduced 5% rate on hospitality/tourism will extend until 31 March 2021.
Self Employed Support
An extension to grants for self employed was announced , but at a much reduced rate of 20% of average profits for a further 3 months, covering Sept to November 20.