This email is part of a regular update I send out to businesses in Scunthorpe. If you have not received this email directly from me please click here to subscribe to my COVID-19 Business newsletter.
The Chancellor's "Winter Economy Plan"
Yesterday the Chancellor announced his “Winter Economy Plan”, which outlines further support measures. You can read his letter to MPs outlining the support package here.
As I said earlier this week, I am planning on writing to the Chancellor in the coming days, to represent the views of businesses in Scunthorpe on the impact of restrictions and what additional support you may need. Please consider filling in this survey to let me know your thoughts.
If you have a specific case (such as BBL applications) that you would like to raise, please write to me directly so I can make representations on your behalf.
JOB SUPPORT SCHEME
The key announcement from the Chancellor’s statement was the Job Support Scheme, which will allow businesses to continue to pay the wages of those on reduced hours. This will follow the furlough scheme which is due to end in November.
You can read more about the JSS on the gov.uk factsheet here.
A couple of important things to note:
- Employees previously ineligible for furlough may be eligible, as the JSS is eligible for those in payroll before 23 September.
- You do NOT need to have accessed the Job Retention/Furlough Scheme to apply for the JSS.
- If you bring back an employee from furlough and place them on the JSS until January, you will STILL be eligible for the £1,000 Job Retention Bonus at the end of Jan.
This is available for small and medium businesses, whilst large businesses will have to take a financial assessment test to prove that their turnover is lower as a result of Covid-19.
HOW TO APPLY: Employers will be able to make a claim online through Gov.uk from December 2020, after payment to the employee has been made and that payment has been reported to HMRC via an RTI return. They will be paid on a monthly basis.
ADDITIONAL SELF-EMPLOYED GRANT
The Self-Employed Income Support Scheme will be offering two final grants, paid in lump sum instalment over two three-month periods from November. This is for self-employed people who are currently actively trading and intend to continue to trade.
First grant – November to January
20% of average monthly trading profits, capped at £1,875.
Second grant - February-April
amount to be announced in due course.
More details here.
HOW TO APPLY: Full details will be announced in due course.
NEW TIMESCALES FOR LOAN REPAYMENTS
Bounce Back Loans- The repayment timescale has been extended from 6 years to 10. This will reduce the average monthly payments by half.
There will also be flexibility to move to interest-only payments, or pause repayments entirely for periods of up to six months.
Coronavirus Business Interruption Loan Scheme (CBILS)- The maximum length of these loans will be extended from six years to ten years to help businesses repay the loans, again potentially lowering repayments.
The deadline to apply for a loan from the CBILS, the Coronavirus Large Business Interruption Loan Scheme and the Future Fund will be extended until the end of November. The Bounce Back Loan application period also expires then.
Please get in touch dirctly if you are struggling with your CBIL/ BBL applications and I will do my best to help.
EXTENDED VAT CUTS AND REPAYMENT DEFERRALS
The VAT Cut on Hospitality and Tourism will be extended from its previous deadline of January to the end of March 2021. This is a policy that I put forward to the Chancellor in the Commons last week, having read survey responses from my previous newsletter, which you can watch here, so I am glad that they have taken on my proposal!
Along with this, the repayment of second-quarter VAT income, which were deferred until March 2021 by the Chancellor earlier this year, will be made easier. You can read more about it here.
SELF-ASSESSMENT TAX REPAYMENT DEFERRAL
After the Self-Assessment Tax Deferral, extending the tax payment deadline from July 2020 to January 2021, the government is creating a 12-month payment arrangement to ease the cost. The deadline will again be extended to January 2022, lessening the cost per instalment.
I hope these changes will bring some much-needed assistance to businesses in Scunthorpe. Just like at the start of the pandemic, me and my Office are on hand to guide you through the application processes and chase up any support you are entitled too. Please get in touch if you need any assistance with the above schemes.
Again, I am keen to gather the views of residents and businesses on the impact this will have on them, so please write to me on how this will impact you.
- COVID-19 SUPPORT DIRECTORY FOR INDIVIDUALS AND BUSINESSES
- Important update: Chancellor's statement and what it means for you - 08/07/2020
- Quick update - full list of businesses, guidance available - 24/06/2020
- Further opening of key sectors, self-employed support - COVID-19 Business update 23/06/2020
- NLC Discretionary Business Grants now open for application - COVID-19 Business update 01/06/2020
- COVID-19 Business update 29/05/2020 -Important update on furlough, Self-Employed income support scheme EXTENDED
- COVID-19 Business update 26/05/2020- Retail update, tax clarifications, claim for SSP
- COVID-19 Business update 14/05/2020- Major housing update, holiday entitlement guidance, guidance for discretionary council grant released - COVID-19 Business update
- COVID-19 Business update 13/05/2020- Furlough scheme extended, health and safety priority
- COVID-19 Business Update 11/05/20- Details on today's announcements, how to make your workplace "Covid-Safe"
- COVID-19 Business update 04/05/2020- Bounce back loans available NOW, Council to get discretion for grants, further info for employees
- COVID-19 Business update 27/04/2020- New 100% backed loans for small businesses, Furlough scheme feedback
- COVID-19 Business update 15/04/2020- Date set for furlough scheme (get ready!), more info for the self-employed
- COVID-19 Business update 03/04/2020- Coronavirus Business Interruption Loans, Industry updates
- COVID-19 Business update 27/03/2020- Important update for employers: more details on "furlough"/ "80% scheme"
- COVID-19 Business update 26/03/2020- Self-employed details, letter to Chancellor and Business Secretary
- COVID-19 Business update 24/03/2020- Important guidelines and updates
- COVID-19 Business update 23/03/2020- Lockdown and further information
- COVID-19 Business update 22/03/2020- Coronavirus Job Retention Scheme, my pledge to the self-employed
- COVID-19 Business update 20/03/2020- URGENT UPDATE
- COVID-19 Business update 18/03/2020- Business Interruption Loan Scheme, Business Rates Holiday, Small Business Grants