In his recent announcement, the Chancellor announced new support for employers and businesses.
We have summarised the announcement below, should any of these announcements apply to you or your business, please contact us for more information.
To be eligible, employees must be working at least a third of their contracted hours and be paid for those hours in full by their employer
For the two thirds of the other hours not worked, the Government will pay a third – so 22 per cent of their overall wages
The employer will have to pay the other third of it. It means with the third they are already paying, they will have to fork out 55 per cent of the total wages
The scheme will start on November 1 – the day after the other furlough scheme ends
It’s open to all small and medium sized businesses, even if they didn’t use the furlough scheme beforehand
The Jobs Support Scheme will only help those on the PAYE payroll.
Self-employed workers have been given more time to pay their tax bill and extra grant help
It’s likely that employees won’t have to apply – and the employers will do the work for them
Employees must be on an employer’s PAYE payroll on or before 23 September 2020 to take part
Employees will be able to cycle on and off the scheme and do not have to be working the same pattern each month
Businesses which have been forced to shut due to coronavirus restrictions will be able to claim £3,000 a month from the government.
The new safety net, which will benefit pubs, restaurant, nightclubs and cafes in England, is an increase from the previous £1,500 grant which could be claimed every three weeks.
Larger businesses will be able to get up to £3,000 a month in help after two weeks of closing.
Medium businesses, the help available jumps to £2,000 per month.
Smaller businesses will be able to claim £1,300 a month, up from the £1,000 they can claim now.
The temporary reduction of VAT rates for hospitality and tourism sector from 20% to 5% would remain in place until 31 March 2021, rather than 13 January.
As well as extending the VAT cut for hospitality and tourism businesses, Mr Sunak announced half a million businesses who deferred their bills will be given more space through a New Payment Scheme.
Rather than paying a lump sum in full at the end March next year, you’ll be able to make 11 smaller interest-free payments during the 2021-22 financial year.
Bounce back loan
Struggling businesses are given more time to pay back Bounce Back loans with a new “Pay As You Grow” scheme.
Firms can also choose to make interest-only repayments, while firms in real trouble can apply to suspend repayments altogether for six months.
Mr Sunak said credit ratings of businesses won’t be affected.
If any of these support schemes would help you or your business please be in touch.