Chancellor Rishi Sunak today announced a series of new measures in his Winter Economy Plan, aimed at supporting employees and employers in the continuing fight against the impact of Coronavirus. A summary of the areas he highlighted are below.
Bounce Back Loans will be extended from six years to 10, cutting monthly repayments by nearly half. Coronavirus Business Interruption Loan Scheme lenders will also be able to extend the length of loans from the current maximum of six years to 10 years. The Chancellor is also extending the deadline for the Government’s coronavirus loan schemes to the end of November.
Businesses that are struggling can choose to make interest-only payments for six months and those “in real trouble” can apply to suspend repayments altogether and take a repayment holiday for six months without seeing their credit rating fall as a result.
Tax and VAT
The 15% emergency VAT cut for the tourism and hospitality industries will be extended from January 2021 to 31 March 2021.
Additionally, business that deferred their VAT bills will be able to pay back their taxes in 11 smaller interest-free instalments to help with cashflow management.
Finally, self-assessment taxpayers with up to £30,000 of income tax and capital gains tax liabilities due will be able to use HMRC’s Time to Pay facility to secure a plan to pay over an additional 12 months. This means that self-assessment liabilities originally due in July 2020 and deferred until January 2021 will not need to be fully settled until January 2022.
Further information regarding the Job Support Scheme will be uploaded on our website shortly. If you have a query about these changes and how they may affect you, contact our team today at firstname.lastname@example.org.