Share on facebook
Share on twitter
Share on linkedin

Winter Economy Plan announced by the Chancellor on 24th September 2020

If you want to protect economy, better protect jobs.

New updates! 

1. Jobs Support Scheme (JSS): In order to support viable jobs, Government will contribute 1/3rd of the wages relating to unworked usual hours. Employer has to pay minimum 1/3rd of the pay relating to usual hours. Government will only contribute maximum £679.92 per month. This will be effective from 1st November 2020 till 30th April 2020 for a period of 6 months. Employee must be in Employer’s payroll on or before 23rd September 2020 and corresponding RTI has to be submitted on or before 23rd September 2020. Employer will be able to claim both Job Retention Bonus and Job Support Scheme if eligible to do both. 

2. Self-employment Income Support Scheme: The Grant will be limited to self-employed persons who are currently eligible and actively in business despite facing reduced operation due to the Pandemic. The Grant will be paid in two stages. First, from 1st November 2020 to 31st January 2021. The second Grant will be for the period from 1st February 2021 to 30th April 2021. It will be a taxable grant covering 20% of average monthly trading profit paid out in a single instalment and will not be more than £1,875 in total. About the claim, the announcement will be made by the Government in its website in due course.

3. Vat rate of 5% on Hospitality and Tourism sector will be extended from earlier 12th January 2020 to 31st March 2020.

4. Payments of taxes deferred: Initially, the Vat payment relating to 20th March 2020 to 30th June 2020 could be deferred and paid by 31st March 2021. As per the new measure, the businesses do not have to pay Vat in lumpsum by the aforementioned date, instead, can be paid in 11 interest free instalment during FY 2021/22. ‘Time to pay’ self-service has also been extended from 31st January 2021 to 31st January 2022.
5. Bounce Back Loan (BBL): The Covid-19 affected businesses can still apply for BBL till 30th November 2020. The business can repay the loan as they grow as termed by the Chancellor ‘Pay as You Grow’. The repayment period will be extended from earlier 6 years to 10 years. If there are sufficient financial reasons, business can only pay the interest or suspend the payment for a period of 6 months. These have to be agreed with the lender though.
6. Corona Virus Business Interruption Loans: Government Backing will be extended to 10 years to provide the lender extra financial cushion. Similarly, the repayment period will be extended from earlier 6 years to 10 years if that helps the business to cope up with the current economic situation.

More Articles

SNP Plus

Know about Income Tax

Income could be non-savings i.e. salary, trading profit, rental income etc, or savings i.e. interest income from bank and financial institutions or dividend i.e. dividend

Read More »