Winter Economy Plan 2020

Winter Economy Plan 2020

Released 24 September 2020

Chancellor Rishi Sunak has unveiled his winter economy plan, providing an update on current coronavirus support measures for individuals and businesses, and announcing the launch of a new Job Support Scheme.

Key points of the statement include:

  • the Coronavirus Job Retention Scheme (CJRS) will end as planned on 31 October 2020;
  • a new Job Support Scheme will provide funding for employers who are able to retain employees but on shorter hours. The scheme will initially run for 6 months from November;
  • an extension to the Self-Employment Income Support Scheme (SEISS) grant, which will provide two grants and will last for 6 months from November 2020 to April 2021. Grants will be paid in two lump sum installments each covering a 3-month period;
  • the temporary reduced (5%) rate of VAT will be extended until 31 March 2021;
  • taxpayers will be given more flexibility over payment of VAT and personal tax bills. Deferred VAT may be spread over 11 instalments, whilst self-assessment tax due on 31 January 2021 may be spread over 12 interest-free payments; and
  • the repayment terms of bounce back loans and other coronavirus support loans are to be extended to help businesses with cashflow. In particular, a new Pay As You Grow scheme will allow businesses with bounce back loans to extend the term of the loan from 6 to 10 years.

Further details can be found in the Winter Economy Plan.

If you have concerns or questions, please contact us on 01932 830664 or through your usual client partner contact. As further details are announced, we will keep you informed.

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