Anna’s Accountancy Alerts – Week 26 (28th September – 4th October 2020)

business

November Budget Cancelled

Chancellor Rishi Sunak has cancelled the planned Budget, and instead has unveiled a ‘Winter Economy Plan’ in its place.

Additional Government Support

Job Support Scheme

The Job Support Scheme will start from 1‌‌ November and employers will be able to claim in December.

The Chancellor said: ‘The replacement for the furlough scheme is intended to support people who are in work so they continue on shorter hours rather than being made redundant.

Under the scheme, which will run for six months, the government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand.

It will apply to employees working a minimum of 33% of their usual hours.

Employers will continue to pay the wages for the hours staff work.

For the remaining hours not worked, the government and the employer will pay one third each. This means employees working 33% of their hours will receive at least 77% of their pay.

The level of grant will be calculated based on employee’s usual salary, capped at £697.92 per month. Grants will be paid on a monthly basis.

For information on what is covered by the grant, which employers and employees are eligible, and how to claim, search Job Support Scheme factsheet‘ on GOV‌.UK.

Employers retaining furloughed staff on shorter hours can claim both the jobs support scheme and the jobs retention bonus.

Self-Employment Income Support Scheme (SEISS) Grant Extension

Self-employed individuals and members of partnerships who are eligible for the SEISS and are actively continuing trading but are experiencing reduced demand due to coronavirus (COVID-19), will be eligible for a further SEISS grant.

The first grant will cover a three-month period from the start of November 2020 until the end of January 2021. It will be a taxable grant to cover 20% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £1,875 in total.

An additional second grant, which may be adjusted to respond to changing circumstances, will be available for self-employed individuals to cover the period from February to the end of April

More information will be published in due course but in the meantime, you may find the HMRC factsheet helpful, search SEISS Grant Extension factsheet’ on GOV‌.UK.

Stay Up-To-Date With Coronavirus & Brexit News

Coronavirus has affected us all. Whether you’re a sole trader, employer or employee. Stay up to date with the latest news – including government support, tax implications, and more.