Coronavirus Job Retention Scheme (JRS) and Job Retention Bonus
– From 1 November, a new Job Support Scheme will be introduced to replace the furlough scheme which closes at the end of October
– The government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand
– Employees must work a third of their usual hours and employers must continue to pay their salary for the hours they work
– For the time they are not working, the government and the employer must each pay one third of their equivalent salary
– This means workers will receive 77% of their usual pay
– Starting in November, the scheme will run for six months
– Businesses can claim both the Job Support Scheme and the Job Retention Bonus
Kickstart Scheme and Measures to Help People Find Work
In order to support people finding jobs, the Chancellor announced the Kickstart Scheme, which will provide £2 billion to support the creation of “high quality” six-month work placements for 16 to 24-year-olds on Universal Credit and at risk of long-term unemployment.
The Government will provide employers that offer the placements funding equivalent to 100 per cent of the relevant level of the National Minimum Wage (NMW) for 25 hours a week. It will also cover the associated Employer NICs and minimum automatic enrolment pension contributions.
The Chancellor, Rishi Sunak, also outlined additional measures, including funding for traineeships and employers that hire new apprentices, as well as funding for several careers and job-finding programmes.
The apprenticeships funding will provide £2,000 to employers in England for every apprentice hired under the age of 25 and £1,500 for each newly hired apprentice aged 25 or older. This funding is in addition to schemes already in place to support employers in taking on apprentices.
There is a temporary cut in Stamp Duty Land Tax (SDLT) from 8 July by raising the nil-rate band from £125,000 to £500,000 until 31 March 2021. The Treasury estimates that, as a consequence, around nine in 10 people buying a main residence will pay no SDLT.
VAT Deferral Scheme
Expansion of HMRC’s Time to Pay Arrangements
Deferral of Self-Assessment Payment
- The government has announced a new ‘Pay as You Grow’ flexible repayment system for businesses who took out a Bounce Back Loan
- This includes extending the length of the loan from six years to ten, which will cut monthly repayments by nearly half
- Interest-only periods of up to six months and payment holidays will also be available to businesses
- Those who took out a Coronavirus Business Interruption Loan Scheme have been given the ability to extend the length of loans from a maximum of six years to ten years, where businesses need help to repay the loan
- Applications for all of the government backed loan schemes will be extended until the end of 2020, giving more businesses access to the Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, the Bounce Back Loan Scheme and the Future Fund.
The Chancellor outlined a VAT rate cut for the Hospitality and Tourism sectors from 20 per cent to five per cent. The measures relate specifically to food and non-alcoholic drinks and to accommodation and admission to attractions, with further details expected to be published later.
The temporary 15% VAT cut for the tourism and hospitality sectors has now been extended to the end of March 2021
Eat Out to Help Out Scheme
The scheme will provide a discount of 50% of up to £10 a person on eat-in meals, including non-alcoholic drinks, at participating establishments on Mondays, Tuesdays and Wednesdays for the month of August.
Restaurants, cafes and pubs can sign-up for the scheme on a new website on Monday 13 July 2020.
This scheme is now closed.
Business Rates Holiday
Protection against aggressive rent collection and closure
Find out more here.
For further information or to arrange for a no obligation preliminary discussion on how your company could qualify under this Government business support scheme, contact Steve Govey or your usual Beavis Morgan Client Partner.
Support for SMEs focusing on R&D
This is a fast-changing situation and it is anticipated that the new measures announced will continue to evolve.
The team at Beavis Morgan is on hand to guide business owners and managers through the weeks and months ahead.
We will continually monitor the situation and update you via this online portal. We also offer the opportunity for you to receive news alerts as they happen directly to your inbox.
You can register to receive these alerts via the contact form provided on this page.
Alternatively, if you have any concerns or queries and require business advice and support at this challenging time, email us at firstname.lastname@example.org.