New measures to support businesses have been announced

The “winter economy plan” includes:

Job Support Scheme

• Businesses will have the option of keeping employees in a job on shorter hours, rather than making them redundant.
• Workers must work a third of their usual hours, paid by their employer as normal.
• For the time they are not working, the government will pay a third of their usual pay, and the employer will pay a third of their usual pay.
• The scheme will be targeted at businesses that need it most – all small and medium-sized firms – but only for big companies if turnover has fallen by a third.
• The scheme will run for six months starting in November.
• Firms can claim both the jobs support scheme and the jobs retention bonus.
• A grant for self-employed workers will be extended on similar terms.

VAT Deferral

• Businesses who deferred their VAT will no longer have to pay a lump sum at the end of March next year. They will have the option of splitting it into smaller, interest free payments over the course of 11 months.
• Any of the millions of self-assessed income taxpayers who need extra help can also now extend their outstanding tax bill over 12 months from January.
• The Government has also extended the 15 percent VAT cut for the tourism and hospitality sectors to the end of March next year

Bounce Back Loans

• The application deadline for all coronavirus loan schemes – including the future fund – has been extended to 30 November.
• Struggling businesses can choose for interest only or up to six months suspended payments with no credit rating impact.

Pay as you Grow

• More than one million businesses that have borrowed under the Bounce Back Loan Scheme will be offered the choice of more time and greater flexibility for their repayments.
• Lenders have been enabled to offer CBILS borrowers more time to make their repayments where needed.

Self Employment Income Support Scheme

• The Self-Employment Income Support Scheme extension will support viable traders who are facing reduced demand over the winter months, covering 20 percent of average monthly trading profits via a government grant (extended to 30 April, 2021)