New Job Support Scheme
A new Job Support Scheme will replace furlough as of 1st November for 6 months, whereby Employers will have the option of keeping on employees on reduced hours rather than making them redundant (for viable jobs). Employees must work at least a third of normal hours and be paid for that by their employer. The Government and Employer will then top up the wages at a third each up to at least 77% of their pay.
This scheme is open to new employers who haven’t used the furlough scheme. Employers can also claim on this scheme and get the job retention bonus.
Self Employed Income Support Scheme (SEISS)
The Government is also extending the self employed support scheme on similar terms and conditions as the new Job Support Scheme. The grant will be limited to self-employed individuals who are currently eligible for the SEISS and are actively continuing to trade but are facing reduced demand due to COVID-19. The scheme will last for 6 months, from November 2020 to April 2021. The extension will be in the form of two taxable grants. The first grant will cover November until January at 20% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total. The second grant will cover a three-month period from February until April. The government will review the level of the second grant and set this in due course.
Pay as you grow – businesses who have taken out bounce back loans will have the choice of more time (up to 10 years) and greater flexibility regarding their repayments. Also the deadline for new applications has been extended until 30th November.
More time to pay deferred taxes – businesses who deferred their VAT until March 2021 will now be able to make the deferred payment over 11 months interest free rather than having to pay a lump sum in March.
The 15% VAT cut for tourism and hospitality sectors will be extended to the end of March 2021.
From 28 September, people on lower incomes who are told to self-isolate through the Test & Trace system will receive a £500 payment. Business affected by local restrictions can claim up to £500 for each week they are required to close.