The government has recently announced a new package that is aimed at helping all workers affected by the Coronavirus pandemic, which includes the new Job Support Scheme which is there to contribute towards employees’ wages, and a limited extension of the already in place Self-Employment Income Support Scheme.
New Package Dates & Details
The Job Support Scheme – This will replace the current furlough scheme on 1st November 2020 and last for six months.
To qualify, employees must work for at least a third of their normal working hours, for which they will be paid in full by their employer. For the hours that are not worked, the cost will be split three ways – the state pays a third, the employer pays a third and the employee loses a third. Find more information about this scheme here – Job Support Scheme
The Self-Employment Income Support Scheme – This has been extended for another six months, a third and fourth grant are to be made available.
The third grant will be available for November 2020 – January 2021, although is at a much lower level than any previous grants – those eligible will get 20% of their average trading profits, which will be capped at £1,875. The details for the fourth grant have not been released yet, see the full information for this scheme here – Self Employment Support Income Scheme
Self-Assessment taxpayers can delay payments further than normal – Tax due by the 31st January 2021 can now be paid over the following 12 months – Tax Payment Deferral
Businesses can now have longer to pay off bounce back loans – New and any existing loans may now be paid over a 10-year period, with payment holidays and interest-only repayment periods are also available for businesses – Bounce back loan extension
If you want any more help with anything in this blog then contact your local bookkeeper – Find your nearest.