Winter Economy Plan
The Chancellor Rishi Sunak has now announced his Winter Economy Plan and there are a few things of direct relevance to many businesses.
There’s a new Job Support scheme which will be introduced on 1st November and will last for 6 months. Summary details are:
• Employees must be working at least 33% of their usual hours
• Employers must also pay one third of the hours not worked
• The government will contribute one third of the hours not worked
• The employee will therefore receive up 77% of their normal pay
• Similar caps exist as per the current furlough scheme
• Employees cannot be made redundant whilst on the scheme
The temporary reduction in VAT for the hospitality and tourist industry will now be extended to 31st March 2020 (was 31st December 2020) and VAT deferred from spring 2020 and due for payment on 31st March 2021, can now be paid over 11 interest free monthly payments.
Also, the repayment period for CBILS and Bounce Back loans has been extended from 6 years to ten years.
Just get in touch anytime to discuss any of this with us and we can explain.