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Coronavirus Chancellor’s Statement 24 September 2020

On 24 September the Chancellor issued the ‘ Winter Economic Plan’ which contained additional measures in relation to the impact of the coronavirus.

The policies announced were principally:

  • New Job Support Scheme.
  • Extension of the Self Employed Income Support Scheme (SEISS).
  • More favourable loan repayment terms relating to bounce back loans.
  • Extension of the temporary VAT rate cut for the hospitality and tourism sectors.

New Job Support Scheme

The current furlough scheme will end on 31 October 2020 and the Chancellor announced a new 6 month scheme which will commence on 1 November 2020.

The scheme is designed for those workers who are working fewer hours as a result of the Coronavirus. For an employer to be able to make a claim, employees will need to work at least 1/3rd of the their normal hours. The government will pay a grant in respect of 1/3rd of the hours not worked. with the employer also having to pay 1/3rd of the hours not worked.

The maximum grant per employee is £697.92 per month.

Once further information has been released by the government, an additional blog will be added to this website.

SEISS

A third grant is being made available under the SEISS scheme for the period from November 2020 to January 2021. The grant will be capped at £1,875 and be restricted to 20% of the average monthly profits. There will also be a further grant covering the period from February to April, but no details have been released about this grant.

Once further information has been released by the government, an additional blog will be added to this website.

Bounce Back Loan Repayments

The principal changes to the bounce back loan scheme are firstly that the loan can be extended to a period up to 10 years and secondly payment holidays can be requested. The deadline for Applying for loans has also been extended up to 30 November 2020.

VAT in Hospitality and Tourism

The reduced VAT rate of 5% has been extended until 31 March 2021.

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