• Jane Wu LLB ACA


A roundup of the Chancellors #wintereconomyplan in graphics

The Job Support Scheme: From November, as long as employees are still working a minimum of one third of their normal hours (paid by their employer), the government and the employer will then each pay for one third of the unworked hours. This effectively guarantees 77% of normal pay for the worker. Employers will be reimbursed in arrears for the government share. All SMEs are eligible, the employee must not be on redundancy notice.

The Self Employment Income Support Scheme (SEISS) will continue to support viable traders. If eligible (you have to already be under SEISS), there will be two grants. The first covers November to January, covering 20% of average monthly trading profits capped at £1,875. The second grant covers February and April - level not yet decided.

New applications for Bounce Back Loans (BBLS), Coronavirus Business Interruption Lan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) and Future Fund have all been extended to 30th November 2020. Bounce Back Loans can be extended from 6 to 10 years, if your struggling you can pay interest only and/or suspend repayments altogether for up to 6 months. CBILS can also be extended to 10 years.

Businesses who deferred VAT payments have the option of paying over the course of 11 months. The opt-in process will be ready in early 2021.

Self Assessment taxpayers with up to £30,000 of self assessment liabilities can have more time to pay - over 12 months from January

The temporary reduced VAT rate of 5% for hospitality and tourism is extended until 31st March 2021.

All images courtesy of HM Treasury

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