Rishi Sunak delivered his Winter Statement and we have taken this opportunity to surmise the most widely available and relevant reliefs and updates.

The Job support scheme

The scheme is aimed at supporting viable jobs through a season of reduced demand as businesses recover from the measures the government has put in place to tackle Coronavirus.

Employers will continue to pay staff for the hours worked, for a minimum of 33% of their normal hours but the burden of the hours not worked will be shouldered by the employer, the employee and the government, who will pay one-third of hours not worked, in arrears and up to a maximum of £697.92 per month.

Please read our dedicated post on the Job Support Scheme to learn more.

 

Tax Cuts and deferrals

VAT cuts

As part of Rishi Sunak’s Winter plan, it was announced that the new and reduced 5% VAT rate placed on food and soft drinks in the hospitality sector will be extended until March 2021.

 

VAT deferral

Businesses who deferred their VAT liability will be able to take advantage of a new payment scheme that will allow them to make 11 smaller and interest-free payments against the liability into the financial year ending 2022.

 

Self-Assessment

Self-assessment taxpayers will be able to benefit from an additional 12-month extension from HMRC as part of the self-service time-to-pay arrangement facility. This will mean that payments deferred in July 2020 and those due in January 2021 will not need to be paid until January 2022.

 

Pay As You Grow

Small businesses that were forced to take out a Bounce Back Loan will be offered the chance to extend the term of the loan from 6 to 10 years, nearly halving monthly repayments.

Interest-only periods of up to 6 months and holiday payments will also be made available. This is designed to protect jobs in the more than one million small businesses that took the loans that have, according to the Chancellor, provided a £38 billion boost to the economy.

In addition, the Chancellor announced the extension of the application deadline for the CBILS until the end of November.

 

In Summary:

The government are certainly ramping down support as the UK economy, businesses and families transition into the new normal and attempt to find their feet on a constantly shifting sand.

However, for now, they continue to implement reliefs that should help all to soft land into the new year and beyond.

As always if you have any questions, need advice or help please don’t hesitate to get in touch.