COVID-19 – CHANCELLOR’S ANNOUNCEMENT YESTERDAY

A summary of the Chancellor’s announcement is below:

  • A new Jobs Support Scheme will be launched for employees working at least a third of their normal hours.  This will operate for 6 months from November replacing the furlough scheme which will end on 31st October.
  • The Self Employment Income Support Scheme grant is being extended.  It will cover 20% of 3 month’s profits from November to the end of January, up to a maximum payment of £1,875.  A further grant will be available to cover the period from February to the end of April 21.
  • A “Pay as you Grow” scheme will allow businesses to extend their Bounce Back loans from 6 to 10 years.  Businesses can also move to interest-only payments, or suspend repayments for 6 months if they are "in real trouble" with credit ratings unaffected.
  • The Government guarantee on Coronavirus Business Interruption Loans will be extended to 10 years and a new successor programme will be announced in January.
  • The temporary reduction of VAT from 20% to 5% for tourism and hospitality businesses has been extended until 31 March 2021.
  • Businesses who deferred their VAT bills this Spring will be able to pay back their taxes in 11 smaller interest-free instalments.
  • Self-assessment income tax payments can be deferred to January 2022.

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