Government support for businesses
Coronavirus Job Retention Scheme
The Coronavirus Job Retention Scheme has been extended into March 2021 to allow employees to continue to work where they can. Workers in any part of the UK can retain their job, even if their employer cannot afford to pay them, and be paid at least 80% of their salary up to £2,500 a month.
Employers small or large, charitable or non-profit are eligible and because more businesses will need to close, they will now be asked to pay just National Insurance and Pensions contributions for hours not worked.
Updated 6 November.
Local Restriction Support Grant and Additional Restrictions Grant
Business Grants worth up to £3,000 per month have been announced for businesses required to close in England due to local or national restrictions. Current eligibility criteria for the Local Restrictions Support Grant are:
- For properties with a rateable value of £15,000 or under, grants to be £1,334 per month, or £667 per 2 weeks
- For properties with a rateable value of between £15,000 to £51,000 grants to be £2,000 per month, or £1,000 per 2 weeks
- For properties with a rateable value of £51,000 or over grants to be £3,000 per month, or £1,500 per 2 weeks.
Details of the scheme has just been released and we are waiting to hear how much funding we are being allocated. We will offer more information about eligibility and how to apply as soon as possible, including the discretionary Additional Restrictions Grant. Information updates can be found on our Local Restrictions Support Grant and Additional Restrictions Grant webpage.
Self Employment Income Support Scheme (SEISS)
The Self Employment Income Support Scheme (SEISS) will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.
The first grant will cover a three-month period from 1 November 2020 until 31 January 2021 and will be at 80% of average monthly trading profits, capped at £7,500.
The second grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the second grant and set this in due course.
The grants are taxable income and also subject to National Insurance contributions.
Updated 6 November.
Deferral of VAT payments
The government announced that businesses who deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period. Instead of paying the full amount by the end of March 2021, you can make smaller payments up to the end of March 2022, interest free. You will need to opt-in to the scheme, and for those who do, this means that your VAT liabilities due between 20 March and 30 June 2020 do not need to be paid in full until the end of March 2022. Those that can pay their deferred VAT can still do so by 31 March 2021.
If you are still unable to pay the VAT due and need more time, see the guidance about what to do if you cannot pay your tax bill on time you can also contact HMRC by phoning 03002003835.
More information on the scheme will be available on GOV.UK in the coming months.
The government also intends to give Coronavirus Business Interruption Loan Scheme lenders the ability to extend the length of loans from a maximum of 6 years to 10 years if it will help businesses to repay the loan.
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