The UK Chancellor Rishi Sunak has just announced the next series of measures to protect businesses and jobs over the next 6 months.

We are running a webinar on Monday morning at 9:30am to bring you more detail and to answer your questions on the announced measures, including:

Key points:

• Furlough Scheme will end as planned at the end of October
• New “Jobs Support Scheme” where Govt will support wages of people in work who have reduced hours
• employee must work and be paid for at least 1/3 of normal hours
• Govt and employer will cover 2/3 of pay
• All SMEs are eligible but only larger businesses when turnover has fallen during the crisis
• Can still use the scheme if didn’t use Job Retention Scheme
• Starts November and will run for 6 months
• Can still claim Jobs Retention £1k bonus which is due to be paid in February for employees who were furloughed and are still on the payroll and earned average £520 per week Nov-Jan)
• Self Employed scheme to continue on similar terms to Jobs Support Scheme for 6 months

In financial measures, he announced:

• Bounceback Loans- “pay as you grow” meaning loans can be extended from 6 to up to 10 years, and interest only payments possible including six month no payment extensions (no impact on credit rating)
• CIBILs- Govt guarantee to be extended up to 10 years
• Deadline for all loans schemes to be extended to end of year
• More to come on loan schemes
• Deferred VAT bill can be spread over 11 payments
• Lower VAT rate for hospitality etc to be extended to 31^st March 2021

As always there is much to understand and further details will follow, which we will study and bring to you on Monday.