New rules and deadlines
...for struggling firms.
There have been a number of pretty big moves from Chancellor Rushi Sunak over the last 6 months or so, but many of them came with expiry dates attached. As of the 31st of October, for instance, the Coronavirus Job Retention Scheme is grinding to a halt. To be fair, we always knew this was coming.
The scheme’s been tapering off for a while and no one was pretending it would last forever. Now, in place of the CJRS furlough rules, we’ll have a new Job Support Scheme. It’s a tighter, more strictly focused system, designed specifically to support employers putting people back to work on reduced hours.
Here are the basics:
The Job Support Scheme might be the biggest headline-grabber of the new rules coming in, but there’s still a lot more help currently on the table – particularly for smaller businesses. Here’s a quick breakdown:
As for self-employed people, another 2 rounds of the Self-Employment Income Support Scheme have been announced. The amounts on offer are going down, though, as expected.
The upcoming third grant will only cover 20% of average profits from November 2020 through to January 2021, with a cap of £1.875. Beyond that, a fourth grant will be available to see you through from February to April 2021 – although no specific details have been announced just yet.
For people struggling with their Self Assessment tax bills, the deadlines have been relaxed a bit as well. People having trouble making their January 31st 2021 payments will now be able to defer them for an additional 12 months, to January 2022.
With the pandemic still wreaking havoc across the UK economy, none of these measures is expected to save every business – or even every individual job. However, they could still be a lifeline for many. There are more details to come on some of them in the coming days and weeks - so keep safe, keep yourself healthy and keep checking back for more Voices from the RIFT...