CORONAVIRUS BUSINESS SUPPORT OVERVIEW
UPDATE 24 SEPTEMBER

Chancellor Rishi Sunak has announced the latest business support packages in light of the ongoing challenges of Coronavirus. 

KEY CHANGES
JOB SUPPORT SCHEME – replacing the furlough scheme when it ends on 31 October
  • Businesses will have the option of keeping employees in a job on shorter hours, rather than making them redundant.
  • Under the scheme, the government will subsidise the pay of employees who are working fewer than normal hours due to lower demand
  • It will apply to employees who can work at least a third of their usual hours.
  • Employers will pay employees for the hours they do work.
  • For the hours employees can’t work, the government and the employer will each cover one third of the lost pay.
  • The grant will be capped at £697.92 per month.
  • The scheme will be targeted at businesses that need it most – all small and medium-sized firms – but only for big companies if turnover has fallen by a third.
  • All small and medium sized businesses will be eligible for the scheme.
  • Larger business will be eligible if their turnover has fallen during the crisis.
  • Firms can claim both the jobs support scheme and the jobs retention bonus.
  • It will be open to employers across the UK even if they have not previously used the furlough scheme.
  • The scheme will run for six months starting in November.
SELF-EMPLOYED GRANT
  • The new self-employment grant will cover 20 per cent of a self-employed person’s average monthly profits from November to January next year, up to a total of £1,875.   
  • From February 2021 to the end of April, a second grant will be available to self-employed workers. It has not yet been announced how much this second grant will cover.
  • Only those who made less than £50,000 a year in profit between the 2016 and 2018 tax years were eligible to claim the previous grants. Payments were based on the average 80 per cent of earnings, up to £2,500 per month.
  • Businesses must be actively trading in order to be eligible for the grant, even in cases where they’re facing reduced demand because of the pandemic.
  • Anyone who was eligible for the original self-employment income support scheme (SEISS) will be entitled to the new help.
  • Income tax deferrals will allow the self-employed to defer self-assessment income tax payments (usually due in July) to be deferred until the end of January 2021.

    BUSINESS LOANS

    • “Pay as you grow” to help companies repay state-backed business loans.
    • Loans can be extended from six to 10 years, almost halving repayments. Interest-only payments can be made, and firms in “real trouble” can suspend their payouts.
    • All of the government’s state-backed loan schemes will be extended until the end of 2020, and the government is starting work on a new guarantee loan programme to begin in January.
    • The chancellor will allow businesses to spread their VAT bills over 11 separate payments.
    HOSPITALITY SECTOR
    • The chancellor is cancelling a planned increase in VAT, keeping a lower rate of 5% VAT for hospitality and leisure firms until 31 March 2021.  This was due to have been increased to 20% on 13 January.
    HISTORIC SUPPORT

    The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.

    This includes a package of measures to support businesses including:

    To find out how CBILS will impact EIS Tax Relief, click HERE.

    All pages within this section will be updated as more information becomes available.