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More unprecedented business support announced

  • 21st March 2020

The next phase of unprecedented business support has been unveiled. More details will come though in due course but some much needed comfort for many.

The next phase of unprecedented business support has been unveiled. More details will come though in due course, but this should provide some much-needed comfort for many.

Job Retention Scheme

A game-changing Job Retention Scheme has been announced meaning 80% of wages will be covered for ‘furloughed’ employees, subject to a monthly cap of £2,500.

Employers intending to make use of the Job Retention Scheme should discuss this with employees who will become classified as furloughed workers. This means that they can be kept on the employer's payroll, rather than being laid off.

If your salary is reduced as a result of these changes, you may be eligible for support through the welfare system, including Universal Credit.

The Job Retention Scheme will initially run for three months from 1 March 2020, but may be extended if necessary.

Other support

Automatic deferral of VAT falling due between now and 30th June. This will carry no penalty or interest as long as it is settled by the end of the 2020/21 tax year. There is no need to contact HMRC first.

Automatic deferral of 31st July self assessment tax to 31st January. Again no penalties or interest if paid by the revised due date and no need to contact HMRC.

The business interruption loan fund previously announced and due to launch next week will now have its interest free period increased from 6 months to 12 months.

Read more here:

Any news or resources within this section should not be relied upon with regards to figures or data referred to as legislative and policy changes may have occurred.