COVID-19: Support For Businesses From UK Government
The Government has announced a package of new measures aimed at helping workers affected by the ongoing coronavirus crisis, including a new Job Support Scheme which will contribute to some employees' wages, and a limited extension of the Self-Employment Income Support Scheme.
Here are the key announcements at a glance:
- The new Job Support Scheme will replace furlough, start on 1 November 2020 and last six months. To qualify, employees must work at least a third of their normal hours, for which they'll be paid in full by their employer. For 'normal hours' they don't work, the cost will be split three ways – the state pays a third, the employer pays a third and the employee loses a third.
- The Self-Employment Income Support Scheme has been extended for six months, with a third and fourth grant to be made available. Though the third grant, for November 2020 to January 2021, is at a much lower level than the previous grants – those eligible will get 20% of their average trading profits, capped at £1,875. We don't yet have details for the fourth.
- Self-assessment taxpayers can now delay payments further. Tax due by 31 January 2021 can now be paid over the following 12 months instead.
- Businesses have been given longer to repay bounce back loans. New and existing loans can now be repaid over 10 years, with payment holidays and interest-only repayment periods also available.