Update 02/11/2020:
As the country is returned to lockdown, the Chancellor has announced an extension to the Coronavirus Job Retention Scheme. You can find full details on gov.uk.
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We bring you the latest round-up of current support for businesses and self-employed individuals who have been adversely affected by the pandemic and local lockdowns. Here’s the Coronavirus support that accountants should be aware of.
Job Support Scheme
The Job Support Scheme is being introduced in order to retain employees in businesses that are facing lower demand due to Covid-19.
Under the JSS, the employer pays for hours worked as usual. The cost of hours not worked is split between the employer, the employee (a maximum reduction in pay of 23%), and the government (wage support).
The scheme opens on November 1st 2020 and runs for six months.
Full details are available on gov.uk.
Bounce Back Loan Repayments
With more details still pending, the new Pay as You Grow flexible repayment system was announced by the Chancellor in the Winter Economy Plan.
For businesses who have taken a Bounce Back Loan, this will extend the loan repayment period to 10 years and cut monthly repayments by almost half.
The Pay as You Grow scheme will also introduce interest-only periods of up to six months and make payment holidays available.
Deferred VAT Repayments
Also introduced in the Winter Economy Plan, businesses that deferred VAT will now be able to pay in smaller installments over a longer period.
The New Payment Scheme means that the VAT liability that was due between 20th March and 30th June 2020 will not need to be paid in full until 31st March 2022. The repayments are interest-free, but the scheme is on an opt-in basis.
More details will be added to gov.uk.
See BTCHub, the cost-effective answer to filing Making Tax Digital for VAT returns.
Coronavirus Job Retention Scheme
The CJRS is a grant that covers a portion of the wages of employees on furlough.
Claims for periods ending on or before 31st October 2020 must be submitted by 30th November 2020. The scheme is now only open to claims for employees that were previously furloughed before 30th June 2020 and claimed before 31st July 2020.
Full information is available on gov.uk.
Self-Employment Support Scheme extension
The SEISS closed to applications for the second grant on 19th October. The extension of the scheme was announced in the Winter Economy Plan which will cover three months of profits between November 2020 and January 2021 worth 20% of average monthly profits to a maximum of £1,875. A further three months of support will be announced later to cover February to April 2021.
Our Ultimate Guide to Self-Assessment has been updated for 2020 with Coronavirus specific tips and information on the SEISS, one piece of the Coronavirus support that accountants should be aware of. Download your free copy here.
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