The UK government has announced a raft of new measures today, designed to help businesses impacted by Covid-19 over the coming months. Here are the key points:
Income support schemes
The current furlough scheme, which comes to an end next month, will be replaced by a new Job Support Scheme running for at least six months from November onwards. The government will pay part of worker's wages who have lost hours and employers will be required to contribute as well.
Rishi Sunak also said that the Self Employment Income Support Scheme for self-employed people will be extended until April 2021, but at only 20% of average trading profits, rather than the 70 - 80% seen in previous rounds.
The 5% VAT rate for the tourism and hospitality sector will be extended until 31 March 2021 (originally it was due to end in January).
VAT payments that have been deferred until March 2021 may now be paid in instalments, interest free - rather than all in one lump sum.
The government guarantee on Coronavirus Business Interruption Loans will be extended to ten years and there will be a new loan scheme announced in January 2021.
The repayment term for Bounceback Loans may be extended from six to ten years under a new "pay as you grow" scheme.
Businesses will have more flexibility to suspend repayments or move to interest-only payments where they are experiencing financial difficulty.
Taxpayers with tax debt of up to £30k will be able to set up a payment plan over 12 months to January 2022.
Scholes Chartered Accountants will be publishing more details about the Job Support Scheme in the coming days.