CORONAVIRUS UPDATE
Chancellor announcement
Furlough scheme to come to an end
The Chancellor has announced the furlough scheme will come to an end on 31st October 2020. But, the support provided by the Government has been adapted to what business’ need now.
Job Support Scheme
Chancellor Rishi Sunak has announced that from 1st November 2020, the Job Support Scheme will be introduced.
To be eligible, employees must work a minimum of 33% of their normal hours.
For the remaining hours not worked, the Government will pay 1/3, and the employer will pay 1/3.
Self-Employed Income Support Scheme
The SEISS will also be extended on ‘similar terms’ to the Job Support Scheme.
Pay As You Grow
For business’ that took Government guaranteed loans during the crises, the Pay As You Grow scheme has been introduced.
Loans can now be extended from 6 years, to 10 years.
They can also move to interest only payments, or suspend payments if they are in real trouble, for up to 6 months.
This will have no negative impact on the business’ credit rating.
There will also be a new loan scheme introduced in January 2020.
Deferral Payback Extended
For business’ that deferred their VAT, the payback deadline of 31st March 2021 has been revised.
Business’ will have the option of splitting the VAT payable into smaller, interest free payments over the course of 11 months.
This is also applicable to those who are self-employed and deferred tax payments to January 2021
VAT Increase cancelled
Hospitality and tourism recently had VAT cut from 20% down to 5%. This reduction will be extended to 31t March 2021.
The MDH team are here to support you
If the above will have an impact on your of your business, please book in a 30 minute call with Michael or Natalie to discuss.
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