Updated Government Financial Support Package

The Chancellor Rishi Sunak yesterday made a speech announcing various further measures to support businesses and taxpayers, in addition to the Government’s other general measures being put in place to protect individuals from coronavirus. 

The headlines are;

• The introduction of the new Job Support Scheme from November, which will be in place for 6 months to “support viable jobs” aimed to sustain employment and help businesses keep their staff.  This will replace the Coronavirus Job Retention Scheme (also known as the furlough scheme) which finishes at the end of October 2020.  The previously announced Job Retention Bonus remains unchanged.  Of course now we need to read and understand the finer detail of how the scheme will work.

• An extension to the Bounce Back and Coronavirus Business Interruption Loan Schemes giving better terms to help businesses with cashflow, by extending the repayment period and government guarantee.  The schemes will be available until at least November and the more preferential repayment terms will not affect anyone’s credit rating.  This will come under a ‘pay as you grow scheme.’

• Those that deferred their VAT bill between March and July 2020 until March 2021 will now get a further extension to spread that VAT due over an additional 11 months beyond this date, on an interest free basis.

• The continued reduction to the VAT rate from 20% to 5% for the hospitality and travel sector until 31 March 2021. (previously only expected to be in place until 13/1/20).

• There will be a further payment available under the current Self-Employment Income Support Scheme, if your self-employed business has been affected.

• The ability for individuals to spread their Self-Assessment Income Tax payment due in January 2021 over 12 months if the liability is under £30k.

As you can imagine, there’s a lot of information to take in and we’re wading our way through it so do look out for our next update by newsletter which will be sent out once we have the full details to share.  We also intend to run further webinars once we’ve digested everything and the government have issued enough guidance to enable a clear understanding of how everything is to be implemented.

Of course, the changes may not benefit everyone or even be applicable to you but it’s important we share and it may be of use to a friend or relative or yours so feel free to share.

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FUSE is an independent Chartered Certified firm of accountants and tax advisors based in Highgate Village, North London. We provide a dynamic range of services to clients working in property, media, entertainment and professional services. Our clients vary in size from self employed sole traders, small enterprises and medium size businesses. We believe that comprehensive financial planning and sound business financial advice are the keys to growth and profitability.