The government recently announced their winter economy plan, to provide additional government support for businesses and employees that have been impacted by COVID-19. We have summarised the key points below which may affect yourself or your business.
Job Support Scheme
From 1 November a new Job Support Scheme will be introduced which will run for six months, replacing the current Job Retention Scheme. The scheme will contribute towards the wages of employees who are working fewer than normal hours.
The Job Support Scheme will be open to employers, even if you have not previously applied under the Coronavirus Job Retention Scheme.
Extension to the reduced rate of VAT for Hospitality and Tourism
The temporary reduced rate of VAT (5%) to tourist attractions and goods and services supplied by the hospitality sector has now been extended until 31 March 2021.
VAT Deferral New Payment Scheme
Any VAT payments which were deferred between 20 March and 30 June 2020, are due to be paid to HMRC by 31 March 2021. If you can not pay the VAT by 31 March 2021, you can use the New Payment Scheme to spread these payments over equal instalments up to 31 March 2022.
Visit HMRC to find out more information on the VAT payments deferral.
New Self-Assessment Self-Serve Time To Pay Scheme
If you’re unable to pay your Self-Assessment bill in full by 31 January 2021, you can set up a Time to Pay payment plan of up to 12 months.
If you have Self-Assessment debts of up to £30,000, you’ll be able to access this Time to Pay facility through GOV.UK and will get automatic and immediate approval. Please use the following link for further guidance and advice, https://www.gov.uk/difficulties-paying-hmrc.
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, 0300 200 3822.
You must meet the following requirements to be able to apply for the scheme:
To read more about the Winter Economy Plan, visit the HMRC website for the full news story from the Chancellor.