As the ‘new-normal’ takes shape, and new rules are implemented, we are here to share with you the latest news on the Covid-19 business schemes outlined by Chancellor Sunak in his ‘Winter Economy Plan’.
These updates are correct and up to date as of Monday 28th September. Please note these are measures announced by the Chancellor are not mandatory and purely here to help.
New Job Support Scheme
With the existing job retention scheme due to end on the 31st October, the job support scheme will come into place. From the 1st November employees are eligible to receive 77% of their salary.
The scheme will run for a total of 6 months. Criteria is as follows:
- Employees must work a minimum of 33% (one-third) of their contracted hours. 55% must be paid by the employer with the remainder paid by the government.
- You can apply for the job support scheme if you have been an employee, on the payroll, from the 23rd September 2020.
Self-assessment payments deferral extended
Initially self-assessment tax payments due by the 31st July 2020 were deferred until January 2021. Taxpayers can now extend this deadline until January 2022. No penalties or interest will be applied.
VAT deferrals extended
Those that have already applied for the VAT payment deferral until 31st March 2021 can now re-apply for a further extension. Instead of submitting a lump sum payment by March 2021, equal payments can be made, interest free, throughout the 2021/2022 financial year. The final VAT payment would not require until March 2022.
Those who wish to take advantage of self-assessment and VAT extensions must apply through the ‘Time To Pay’ plan, simply call HMRC Covid-19 TTP Helpline on 0800 115 9559.
For further advice on the Covid-19 support schemes please do not hesitate to speak to one of our expert accountants or visit our Covid- 19 Hub for more information: Covid-19 Business Hub.