Here’s a quick summary of the Winter Plan announced on Thursday 24 September 2020…
Coronavirus Jobs retentions Scheme (CJRS) will be replaced with a new scheme (accountants stocking up on gin and chocolate to get them through yet another change). Employees working at least 1/3 of their normal hours will receive 100% pay from their employer for these hours PLUS 2/3 of pay for the time not worked. This will be funded by 1/3 from the employer and 1/3 from the government.
So, if an employ works the minimum 1/3 of their normal hours they will receive 78% of their normal pay, the employer will pay 56% of their normal wages (for 33% of the work) and the government will top up with 22% of their normal wages. Employers can, however claim the £1000 job retention bonus provided they continue the employment to at least 31 January.
Self Employed income Support Scheme (SEISS) will provide 2 more grants for Nov-Jan and Feb-Apr but only at 20% this time. Self employed can continue to work while receiving the grants but must have been adversely affected by Covid.
Hospitality sector VAT – reductions will continue.
4 loan schemes
Bounceback loans (BBLS), CBILS, CLBILS and Future Fund can be claimed up until 30 November. Repayments for BBLS and CBILS can now be made over 10 year and there are certain repayment breaks allowable in BBLS.
VAT deferrals from Mar-June 2020 can now spread the payment over the 2021-22 financial year.
Self assessment income tax etc. due 31 January can take advantage of Time to Pay arrangements to spread the cost over 12 months to January 2022.
At the time of writing I have no further information but I will run a webinar on the subject at 9:30am on Friday 2 October. Email hello@hudsonbusiness.co.uk to be added to the notification list.