Rishi Sunak has just finished his speech and announcements of the next raft of support for small businesses.

I've put the headlines below.  I haven't yet had chance to view the full details of each support measure, but as I do, I'll send out another update

Job Retention Scheme

The Chancellor announced his intention to support "viable jobs" in small businesses (great news!)

There will be a new Job Support Scheme to replace the current furlough scheme.  The scheme will start on the 1st November and will continue for 6 months

To be eligible, employees must work a minimum of 33% of their normal hours and be paid as normal

The employer will then make up the wages for 1/3 of the time not worked

The Government will also pay wages for 1/3 of the hours not worked

That means.......

An employee who normally works 100 hours, now works 33 hours

That's 67 hours not worked

The employer pays for 1/3 of those hours (67 hours x 1/3) = 22 hours

The government does the same

The employee now gets 77% of their wage

33 hours worked

22 hours paid by the employer

22 hours paid by the Government 

Total = 77 hours

(I'll do a better explanation of this on a video later!!)

As with furlough, there will be caps in payment levels

Deferred VAT Payments

If you previously deferred your VAT payments to 31st march 2021, you will now not need to make a lump sum repayment.

You will now be able to split the repayment into 11 interest free repayments from March 2021

Fab news!!!

CBILS/ Bounce Back Loans

Loan repayment terms will now be extended from 6 years to 10 years, halving the average monthly repayment

There will be availability for a payment holiday or just making interest only payments if a business is in "real trouble" for up to six months (I've no idea on the definition of real trouble yet)

Your credit rating will not be affected by taking advantage of this offer

There will also be a new loan scheme announced in January

5% VAT on Hospitality

The 5% VAT rate on hospitality was due to run out in January.  This now will be extended to 31st March

Income Tax

There's an announcement that personal tax bills will be able to made on a payment plan between January 21 and January 22.

Bills will still need to be paid (including any deferred in July), but this move removes the pressure from January

stuart ramsay

Written by stuart ramsay