UKFT Update: Coronavirus – New Government Support Announced

PCIAW brexit questions

As Federated Association Members of the UKFT, the PCIAW supports the UKFT and its continued updates regarding Coronavirus and its effect on our industry. The UKFT has shared the latest news on the government’s support regarding Covid-19.

Read more: UKFT helps to shape future negotiations as Brexit nears

The Chancellor has announced a package of new support for businesses. Full details have yet to be released but the headlines are as follows;
Job Support Scheme
A new scheme to replace the furlough scheme. It will be introduced in November and will run for 6 months. 

  • To access the scheme
    • employees will have to work a minimum of a third of their usual hours
    • of the remaining 2/3rds the employer will pay 33% and the government will pay 33%
    • employees on the scheme will therefore receive 77% of their normal wage
  • All SME’s will be eligible to access the scheme. Large companies will only be able to access it if their turnover has dropped.
  • The scheme will be open to all companies even if they have not previously used the furlough scheme
  • The self employed grant scheme will also be extended on similar terms

Companies will be able to access the new Job Support Scheme and the Job Retention Bonus
Cash Flow Support

  • Bounce Back loans
    • the terms of these loans will be extended to 10 years
    • firms will be able to make interest only payments
    • firms struggling to pay will be able to suspend payment for up to 6 months
  • Coronavirus Business Interruption Loans
    • the government guarantee for CBILS to be extended to 10 years

Availability of both loan schemes to be extended till 31st December 2020.

  • Tax Deferral
    • tax deferred and due in March 2021 will now be payable in 11 instalments without penalty
    • a similar scheme will be available for self-employed
  • Hospitality & Tourism
    • VAT held at 5% until March 2021

You might also enjoy