Rishi Sunak's Winter Economy Plan

September 24th, 2020

Self employed grant - to support traders through winter

Throughout this crisis, we have ensured parity between employees and the self-employed. So to support self-employed traders through the winter I am extending the existing self-employed grant on similar terms and conditions as the new Jobs Support Scheme.

The govt is continuing its support for millions of self-employed individuals by extending the Self Employment Income Support Scheme Grant (SEISS). An initial taxable grant will be provided to those who are currently eligible for SEISS and are continuing to actively trade but face reduced demand due to coronavirus. The initial lump sum will cover three monthsโ€™ worth of profits for the period from November to the end of January next year. This is worth 20% of average monthly profits, up to a total of ยฃ1,875.

Who is eligible? 

To be eligible for the scheme, self-employed individuals, including members of partnerships, must meet the following criteria: 

What to find out more? Follow this link - https://goldstagaccounts.co.uk/resources/self-employment-income-support-scheme-seiss-grant-extension

More time to pay

Any of the millions of self-assessed income taxpayers who need extra help, can also now extend their outstanding tax bill over 12 months from January.

New VAT deferral scheme

Nearly half a million businesses deferred more than ยฃ30 billion of VAT this year. Those payments are all due in one lump sum in March. Instead, Iโ€™m allowing businesses to ๐ฌ๐ฉ๐ซ๐ž๐š๐ ๐ญ๐ก๐ž๐ข๐ซ ๐•๐€๐“ ๐›๐ข๐ฅ๐ฅ ๐จ๐ฏ๐ž๐ซ ๐Ÿ๐Ÿ ๐ซ๐ž๐ฉ๐š๐ฒ๐ฆ๐ž๐ง๐ญ๐ฌ, with no interest to pay.

This will benefit up to half a million businesses โ€“ on average, turning a one off ยฃ60k payment in March, into 11 payments of less than ยฃ6k.

VAT cut extended

To support more than 150,000 businesses and protect 2.4 million jobs through the winter we are ๐œ๐š๐ง๐œ๐ž๐ฅ๐ฅ๐ข๐ง๐  ๐ญ๐ก๐ž ๐ฉ๐ฅ๐š๐ง๐ง๐ž๐ ๐ข๐ง๐œ๐ซ๐ž๐š๐ฌ๐ž ๐ข๐ง ๐•๐€๐“ for hospitality and tourism. We will keep the lower 5% VAT rate until March 31st next year.

Job Support Scheme

The Job Support Scheme will directly support the wages of people in work, giving businesses who face depressed winter demand the option of keeping employees in a job on shorter hours rather than making them redundant.

The scheme will support viable jobs so ๐ž๐ฆ๐ฉ๐ฅ๐จ๐ฒ๐ž๐ž๐ฌ ๐ฆ๐ฎ๐ฌ๐ญ ๐›๐ž ๐ฐ๐จ๐ซ๐ค๐ข๐ง๐  ๐š๐ญ ๐ฅ๐ž๐š๐ฌ๐ญ ๐š ๐ญ๐ก๐ข๐ซ๐ ๐จ๐Ÿ ๐ญ๐ก๐ž๐ข๐ซ ๐ง๐จ๐ซ๐ฆ๐š๐ฅ ๐ก๐จ๐ฎ๐ซ๐ฌ and be paid for that work, as normal, by their employer.

The government, together with employers, will increase those peopleโ€™s wages ๐œ๐จ๐ฏ๐ž๐ซ๐ข๐ง๐  ๐Ÿ/๐Ÿ‘ ๐จ๐Ÿ ๐ญ๐ก๐ž ๐ฉ๐š๐ฒ ๐ญ๐ก๐ž๐ฒ ๐ก๐š๐ฏ๐ž ๐ฅ๐จ๐ฌ๐ญ by reducing their working hours. The employee will keep their job. Anyone who as of yesterday is employed is eligible.

Running November to April, all small & medium sized businesses are eligible to apply. But larger businesses only when their turnover has fallen. Businesses are eligible ๐ž๐ฏ๐ž๐ง ๐ข๐Ÿ ๐ญ๐ก๐ž๐ฒ ๐ก๐š๐ฏ๐ž ๐ง๐จ๐ญ ๐ฉ๐ซ๐ž๐ฏ๐ข๐จ๐ฎ๐ฌ๐ฅ๐ฒ ๐ฎ๐ฌ๐ž๐ ๐ญ๐ก๐ž ๐Ÿ๐ฎ๐ซ๐ฅ๐จ๐ฎ๐ ๐ก ๐ฌ๐œ๐ก๐ž๐ฆ๐ž.

Employers retaining furloughed staff on shorter hours can claim both the Jobs Support Scheme and the Jobs Retention Bonus. This significantly ๐ข๐ง๐œ๐ซ๐ž๐š๐ฌ๐ž๐ฌ ๐ญ๐ก๐ž ๐ข๐ง๐œ๐ž๐ง๐ญ๐ข๐ฏ๐ž๐ฌ ๐ญ๐จ ๐›๐ซ๐ข๐ง๐  ๐›๐š๐œ๐ค ๐ฉ๐ซ๐ž๐ฏ๐ข๐จ๐ฎ๐ฌ๐ฅ๐ฒ-๐Ÿ๐ฎ๐ซ๐ฅ๐จ๐ฎ๐ ๐ก๐ž๐ ๐ž๐ฆ๐ฉ๐ฅ๐จ๐ฒ๐ž๐ž๐ฌ.

Extending govt backed loans

To give businesses longer to apply for all of our loan schemes, I am extending all the deadlines to the end of the year. We are starting work on a new, successor loan programme, set to begin in January.

Bounce back loans - pay as you grow

Bounce Back Loans have given over a million small businesses a ยฃ38 billion boost to survive this pandemic. To give those businesses more time and greater flexibility to repay their loans, weโ€™re introducing ๐๐š๐ฒ ๐€๐ฌ ๐˜๐จ๐ฎ ๐†๐ซ๐จ๐ฐ.

Source: https://twitter.com/RishiSunak