Chancellor's Winter Economy Plan

The Chancellor announced further support for businesses yesterday as part of his Winter Economy Plan.

From 1 November 2020, a new Job Support Scheme will open for six months, whereby the employer pays employees for the hours worked.

For the hours not worked, a third is paid by the employer and a third by the government up to a cap. However, to be eligible, employees must be working at least 33% of their “usual hours”. An overview can be found here https://www.gov.uk/government/publications/job-support-scheme and we will provide further commentary once more details are released.

The existing Self-Employment Income Support Scheme (SEISS) will be extended for those who were eligible for previous grants. Potentially available to cover six months from 1 November to end of April 2021.

The temporary 15% VAT cut for tourism and hospitality businesses will also be extended to end of March 2021.

There will also be extensions to personal tax and VAT payment terms/instalments and more flexibility for businesses to pay back loans under the CBILS and BBL schemes.

We await the finer details from the government and will provide more detailed analysis, including the practical impact for you and your business, when this is published.

For further information or advice on any of the issues raised, or for help with services like bookkeeping, cash flow management or payroll during the Coronavirus pandemic, please call us on 01225 325580, email info@richardsonswift.co.uk, or contact your usual client director.

Please note that this is only a summary of the main issues and should not be construed as advice. Every effort has been made to ensure factual accuracy at the time of publication (25 September 2020), however, the government response to the Coronavirus situation is changing 24-7, so it should not be relied upon completely.