Key points from Rishi Sunak's statement:
1) Job Support Scheme introduced
- starting on 1 November 2020
- support with wages, employees must work 1/3 of their normal time, where Government will support 1/3 of remaining wage
- employer will have to pay 1/3 of wage for unworked hours meaning employee will receive 2/3 of their pay for hours that employee did not work
- support will run for six months
- as an example and employee who will work 1/3 of their regular time will receive 77% of their wage
- open to all small and medium businesses
- larger businesses will have to experience drop in demand (turnover) to use the scheme
- open to employees who were not previously furloughed
- businesses will not be able to issue redundancy notices to employees on Job Support Scheme
- employers will be able to claim Job Retention Bonus for employees on Job Support Scheme as long as they qualify for that
2) Self Employed Support Scheme announced
- extending the scheme for self-employment on "similar terms" to the job support scheme - more details will follow
3) Pay As You Grow
- aimed at businesses who received support through Government guaranteed loans
- loans can be extended from 6 to 10 years
- interest only payment for up to 6 months available for struggling businesses
- repayment holidays for up to 6 months for struggling businesses
- credit rating not affected for those who would suspend payments
- extending deadline for applying for loans until end of year
- new scheme will be available from January - details to follow
4) VAT payment defferal - businesses will be able to spread repayment over 11 smaller repayments with no interest to pay
5) Income Tax due by 31 January (i.e. self-employed) can be paid back over 12 payments from January
6) Cancelation of planned increase of VAT for hospitality and leisure. 5% VAT rate to stay until 31 March 2020
https://www.bbc.co.uk/news/live/world-54273738