Measures on top of the Job Bonus Scheme were also announced by the chancellor to help get businesses through the economic fall-out of the coronavirus crisis.
Rishi Sunak said: ‘The resurgence of the virus, and the measures we need to take in response, pose a threat to our fragile economic recovery…
‘Our approach to the next phase of support must be different to that which came before.
‘The primary goal of our economic policy remains unchanged – to support people’s jobs – but the way we achieve that must evolve.’
Part of his Winter Economy Plan, they cover a wide range of measures and we detail them here.
What’s happening with Bounce Back Loans?
Rishi Sunak’s ‘Pay As You Grow’ initiative will see the repayment period for the loan scheme extended from six years to 10 years. It means monthly repayments will be nearly halved.
What about the Job Retention Bonus?
Sunak said that employers who kept furloughed staff on shorter hours could claim both the Job Support Scheme and Job Retention Bonus.
I’m self-employed – how am I affected?
The Self-Employment Income Support Scheme will be extended to April 30, 2021. This will help viable traders facing less demand, with a government grant covering 20 per cent of their average monthly trading profits.
A second grant, which might be adjusted in response to changing circumstances, will be available for self-employed people to cover the period from February 2021 to the end of April 2021.
What will happen about self-assessment?
Self-assessed income tax payers needing more help will be able to extend their outstanding tax bill for 12 months as of January 2021.
Therefore, payments deferred from July 2020 and due in January 2021 won’t now have to be paid until January 2022.
How about loan applications?
The deadline for applications for all the coronavirus loan schemes, which includes the Future Fund, has been extended to November 30, 2020.
What’s the position on VAT?
Businesses that have deferred their VAT will no longer face having to pay a lump sum at the end of next March. Instead, they can choose to split it into smaller, interest-free repayments over 12 months via the New Payment Scheme.