Big, big strides forward today, good to see the following announced to help support businesses and employees:
- There’s a new job retention scheme and any employer is eligible – where individuals are not working but – most importantly – are kept on – the scheme will cover 80% of their salary up to £2.5k per month. This runs from March 1st 2020 for 3 months, but is extendable.
- To help individuals cash flows, for those due to pay an income tax payment on account in July, the payment is deferred (not cancelled) until January 2021.
- To help business cash flows, the next quarters VAT will be deferred, with nothing due until June: and we’re given until the end of the year to repay. That’s being interpreted as a VAT holiday by some but deferred to me means it needs to be paid at some stage, so in effect it’s a loan.
- The new loan scheme, CBILS, launches Monday and is interest free for 12 months. As per the EFG scheme it has replaced a personal guarantee would be needed.
- Remember that those in the hospitality sector have no rates to pay in 2020/21.