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 months’ 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 £1,875.
Who is eligible?
To be eligible for the scheme, self-employed individuals, including members of partnerships, must meet the following criteria:
- Currently be eligible for the SEISS (although they do not have to have claimed the previous grants)
- Declare that they are currently actively trading and intend to continue to trade
- Declare that they are impacted by reduced demand due to COVID-19 in the qualifying period. The qualifying period for the first grant is between 1 November and the date of claim
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 £30 billion of VAT this year. Those payments are all due in one lump sum in March. Instead, I’m allowing businesses to 𝐬𝐩𝐫𝐞𝐚𝐝 𝐭𝐡𝐞𝐢𝐫 𝐕𝐀𝐓 𝐛𝐢𝐥𝐥 𝐨𝐯𝐞𝐫 𝟏𝟏 𝐫𝐞𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬, with no interest to pay.
This will benefit up to half a million businesses – on average, turning a one off £60k payment in March, into 11 payments of less than £6k.
VAT cut extended
To support more than 150,000 businesses and protect 2.4 million jobs through the winter we are 𝐜𝐚𝐧𝐜𝐞𝐥𝐥𝐢𝐧𝐠 𝐭𝐡𝐞 𝐩𝐥𝐚𝐧𝐧𝐞𝐝 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐢𝐧 𝐕𝐀𝐓 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 𝐞𝐦𝐩𝐥𝐨𝐲𝐞𝐞𝐬 𝐦𝐮𝐬𝐭 𝐛𝐞 𝐰𝐨𝐫𝐤𝐢𝐧𝐠 𝐚𝐭 𝐥𝐞𝐚𝐬𝐭 𝐚 𝐭𝐡𝐢𝐫𝐝 𝐨𝐟 𝐭𝐡𝐞𝐢𝐫 𝐧𝐨𝐫𝐦𝐚𝐥 𝐡𝐨𝐮𝐫𝐬 and be paid for that work, as normal, by their employer.
The government, together with employers, will increase those people’s wages 𝐜𝐨𝐯𝐞𝐫𝐢𝐧𝐠 𝟐/𝟑 𝐨𝐟 𝐭𝐡𝐞 𝐩𝐚𝐲 𝐭𝐡𝐞𝐲 𝐡𝐚𝐯𝐞 𝐥𝐨𝐬𝐭 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 𝐞𝐯𝐞𝐧 𝐢𝐟 𝐭𝐡𝐞𝐲 𝐡𝐚𝐯𝐞 𝐧𝐨𝐭 𝐩𝐫𝐞𝐯𝐢𝐨𝐮𝐬𝐥𝐲 𝐮𝐬𝐞𝐝 𝐭𝐡𝐞 𝐟𝐮𝐫𝐥𝐨𝐮𝐠𝐡 𝐬𝐜𝐡𝐞𝐦𝐞.
Employers retaining furloughed staff on shorter hours can claim both the Jobs Support Scheme and the Jobs Retention Bonus. This significantly 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐬 𝐭𝐡𝐞 𝐢𝐧𝐜𝐞𝐧𝐭𝐢𝐯𝐞𝐬 𝐭𝐨 𝐛𝐫𝐢𝐧𝐠 𝐛𝐚𝐜𝐤 𝐩𝐫𝐞𝐯𝐢𝐨𝐮𝐬𝐥𝐲-𝐟𝐮𝐫𝐥𝐨𝐮𝐠𝐡𝐞𝐝 𝐞𝐦𝐩𝐥𝐨𝐲𝐞𝐞𝐬.
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 £38 billion boost to survive this pandemic. To give those businesses more time and greater flexibility to repay their loans, we’re introducing 𝐏𝐚𝐲 𝐀𝐬 𝐘𝐨𝐮 𝐆𝐫𝐨𝐰.
- Loans can be extended from six to ten years – nearly halving the average monthly repayment.
- Businesses who are struggling can now choose to make interest-only payments.
- Anyone in trouble can apply to suspend repayments altogether for up to six months.