New Job Support Scheme
The Chancellor Rishi Sunak has announced a new job support scheme – this starts from 01 November and will last for six months, this to protect as he says ‘viable jobs in business’.
This new job support scheme will replace furlough and will apply to employees working a minimum of 33% of their usual hours, for the remaining hours not worked the government and the employer will pay one third each, the grant will be capped at £697.92 per month.
This scheme is open to:
- All employers with a UK bank account and a UK PAYE Scheme – you do not need to have used the CJRS Scheme
- Employees must be on an employers PAYE payroll on or before 23 September 2020 – the RTI must have been submitted to HMRC before this date
- The first three months the employee must work 33% of their usual hours – after three months the Government will review this
- Employees do not have to be working the same pattern each month, but each period must cover a period of 7 days
- Usual pay will follow a similar methodology as for the CJRS
- Grant payments will be made in arrears, reimbursements will be made to the employer for the Governments Contribution.
- This grant will not cover Class 1 Employer NICS or Pension Contributions which employers will have to meet
- Short term working arrangements – if put into place, will need to be agreed with employees, this agreement has to be made available to HMRC on request – a full documentary audit trail will need to be kept
- Employees will be informed directly by HMRC on the full details of any claim made relevant to them by their employer
If you believe you may wish to use this scheme then please email us on accounts@jsrmanagement.co.uk
We have not seen any clarity whether this will include Directors/Office Holders or not at this time.
SEISS Scheme
This will be extended to support viable traders who are facing reduced demand over the winter months, covering 20% of average monthly trading profits via a government grant.
The initial lump sum will cover three months worth of profits for the period from November to the end of January next year. This is worth up to a total of £1875. A second grant may be available for self employed individuals to cover the period from February 2021 to the end of April.
Bounce Back Loans – Repayments
This will be paid back (by small businesses) through a ‘pay as you grow’ scheme, extending terms from 6 to 10 years. Interest only period of up to six months and payment holidays will also be available.
VAT
The Government has extended the 15% VAT cut for the tourism and hospitality sectors to the end of March next year.
Hundreds of businesses who have deferred their VAT bill will also be given more time to pay – rather than a lump sum at the end of March next year, businesses will be able to make 11 smaller interest free payments during the 2021-22 financial year.
Self Assessment Taxpayers
There is an additional extension from HMRC on the time to pay, meaning payments deferred from July 2020 and those due in January 2021 will now not need to be paid until January 2022.
