Covid 19 Business Support September 24th 2020 updates were announced yesterday, The Chancellor of the Exchequer announced to Parliament his new measures. These are to help the economy due to the continuing Corona-19 virus pandemic.
His main points:
Covid 18 Business Support – Job Support scheme :
The current job retention scheme will finish in October 2020. However this will be replaced with a job support scheme.
This will be available to all small and medium sized businesses. Even if you have not previously claimed under the existing furlough scheme you may apply.
The new scheme is for employees who work at least 33% of their normal hours.
They will be entitled to pay 77% of their salary. The Government will reimburse the employer with the shortfall.
This is a further move to keep staff in employment, to keep businesses trading. Furthermore to avoid the obvious additional claims for Universal Credit that would follow from mass unemployment.
This scheme will not apply to staff who remain on furlough. The employers who qualify for this scheme will also be entitled to the Job Retention bonus of £1000 per employee previously announced.
Hospitality and Tourism support:
The new measure came into force yesterday regarding closing at 10.00 pm and table service only. The Chancellor is extending the VAT rate reduction of 5% from January. It was intended to finish to the 31 March 2021. This is to both encourage more people to spend in these sectors and assist in cash-flow of the affected businesses.
Self Employed Support Scheme:
It was also announced that the Chancellor intends to extend this scheme to existing self-employed traders.
VAT, Corporation Tax and Self-Assessment tax:
HMRC have been instructed to allow more time and flexibility to businesses in respect of payment of taxes due.
Business Bounce Back Loans:
It was further announced that the time period for repayment of the BBL is to be extended
Covid 19 Business Support Assistance
These measures will assist many businesses during the difficult times faced because of the downturn of trade resulting from the pandemic.
Full details of how these measures can be implemented and when claims can be made will be announced shortly.
We will endeavour to assist clients by communicating these details as soon as they are available.
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