New Business Support Package
Table of Contents
New Business Support Package
Chancellor unveils three extra support measures today on 22nd October 2020, including increased support for jobs and workers hit by Covid restrictions
- Open businesses which are experiencing considerable difficulty will be given extra help to keep staff on as government significantly increases contribution to wage costs under the Job Support Scheme, and business contributions drop to 5%
- Business grants are expanded to cover businesses in particularly affected sectors in high-alert level areas, helping them stay afloat and protecting jobs
- Grants for the self-employed doubled to 40% of previous earnings
Chancellor Rishi Sunak has announced he will be increasing support through the existing Job Support and self-employed schemes, and expanding business grants to support companies in high-alert level areas.
Under the revised job scheme, employers will pay less and staff can work fewer hours before they qualify, while the taxpayer subsidy has been doubled.
Instead of a minimum requirement of paying 55% of wages for a third of hours, as announced last month at the launch of the Winter Economic Plan, employers will have to pay for a minimum of 20% of usual hours worked, and 5% of hours not worked.
The scheme will, as before, be open to all small businesses and larger businesses that can show an impact on revenues.
The Chancellor has also increased both support for businesses in high-alert level areas and grants for the self-employed.
Job Support Scheme
Due to come into effect on November 1, today’s announcement reduces the employer contribution to those unworked hours to just 5%, and reduces the minimum hours requirements to20%, so those working just one day a week will be eligible. Employers will continue to receive the £1,000 Job Retention Bonus.
The Chancellor has also announced approved additional funding to support cash grants of up to £2, 100 per month for businesses impacted by Tier 2 restrictions. This will primarily be for businesses in the hospitality, accommodation and leisure sector who may be adversely impacted by the restrictions in these high-alert level areas.
- For properties with a rateable value of £15,000 or under, grants of £934 per month.
- For properties with a rateable value of between £15,000-£51,000, grants of £1,400 per month.
- For properties with a rateable value of £51,000, grants of £2, 100 per month.
They are additional to the grants of up to £3,000 available for businesses who have been legally required to close and will also be retrospective grants, so businesses can backdate them to August if they’ve been operating in areas with enhanced restrictions since then. The grants could benefit around 150,000 businesses in England.
Today’s announcement increases the amount of profits covered by the two forthcoming self-employed grants from 20% to 40%, meaning the maximum grant will increase from £1,875 to £3,750.
Our service to you
If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.
Get further information from the following pages;
Get further information from the following blogs;