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.