September 2020

Financial worker in wheelchair respecting social distance

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.

To be eligible, employees must:

  • be registered on PAYE payroll on or before 23 September 2020. This means a Real Time Information (RTI) submission notifying payment in respect of that employee must have been made to HMRC on or before 23 September 2020
  • work at least 33% of their usual hours. The government will consider whether to increase this minimum hours threshold after the first three months of the scheme.

The Job Support Scheme will be open to employers across the UK even if they have not previously applied under the Coronavirus Job Retention Scheme (CJRS) which ends on 3‌1‌‌ ‌‌October.

The scheme will operate in addition to the Job Retention Bonus. Businesses can benefit from both schemes in order to help protect viable jobs.

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.

Loans

The Treasury will provide support for lenders so they can offer coronavirus business interruption loan scheme (CBILS) borrowers more time to make their repayments where needed.

Businesses who are struggling can make interest only payments or suspend payments completely for six months.

Bounceback loans, will be paid back through a ‘pay as you grow’ scheme, extending terms from six to 10 years. Interest-only periods of up to six months and payment holidays will also be available to businesses.

The application deadline for all coronavirus loan schemes – including the Future Fund – has been extended to 30 November.

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.

Extension To The Reduced Rate Of VAT For Hospitality And Tourism

The government has extended the temporary reduced rate of VAT (5%) to tourist attractions and goods and services supplied by the hospitality sector. This relief came into effect on 15 July 2020 and will now end on 3‌1‌‌ ‌‌March 2021 across the UK.

Vat Deferral New Payment Scheme

If you deferred payments that were due between 20 March and 30 June 2020, then these payments need to be made to HMRC by 3‌1‌‌ ‌‌March 2021. You can use the New Payment Scheme to spread these payments over equal instalments up to 3‌1‌‌ ‌‌March 2022. Alternatively, you can make payments as normal by 3‌1‌‌ ‌‌March 2021 or make Time To Pay arrangements with HMRC if you need more tailored support.

New Self-Assessment Self-Serve Time To Pay Scheme

If you are unable to pay your Self-Assessment (SA) bill in full by 31‌‌ January 2021, you can set up a Time to Pay payment plan of up to 12 months online without speaking to HMRC. If you have SA tax debts of up to £30,000, you will be able to access the Time to Pay facility through GOV‌.UK and will get automatic and immediate approval. If your SA debts are over £30,000, or you need longer than 12 months to repay your debt in full, you will still be able to use the Time to Pay arrangement by calling HMRC.

Other Business Support Schemes:

Changes to Coronavirus Job Retention Scheme (CJRS)

From 1‌‌ October, HMRC will pay 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work.

Employers will continue to pay furloughed employees 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. Employers will need to fund the difference between this and the CJRS grant themselves.

For help with calculations, you can search Calculate how much you can claim using the Coronavirus Job Retention Scheme‘ on GOV‌.UK.

You will also continue to pay furloughed employees’ National Insurance and pension contributions from your own funds.

Chancellor Rishi Sunak has cancelled the planned Budget, and instead has unveiled a ‘winter economy plan’ in its place.

If you have a PAYE Settlement Agreement (PSA) in place you may not have received a payslip from HMRC confirming the amount owed under your PSA arrangement for the 2019-20 tax year.

If you have not received your payslip confirmation letter, you should pay the tax and National Insurance amount you calculated and submitted for your PSA to HMRC. You should not wait until you receive your payslip confirmation from HMRC. Any electronic payments relating to the PSA must clear into the HMRC bank account by no later than 22‌‌ October 2020.

Further information can be found on GOV.UK.

When making a payment, you should ensure you quote your PSA reference number, which is shown on your PSA confirmation letter.

You should not use your PAYE Accounts Office reference to make your PSA payment. This is because payments received with the PAYE Accounts Office reference are allocated to your normal PAYE account and you will continue to receive reminders for the PSA payment even though you have paid.

If you do not have your PSA reference number or are unsure about the action to take, you should contact the PSA team on 0300‌‌ 322 7077.

You may be fined or charged interest or a late payment penalty if they do not pay or their payment is late.