Chancellors Update on VAT, Furlough & Government Loans

Good Morning

I hope you are well I just wanted to pick up with you all following the Chancellors announcement yesterday and explain what this means for businesses going forward. The main points in his “winter economy plan” made during his House of Commons statement were:

Job Support Scheme: A 6 month scheme starting 1 November for all employers even if they haven’t used the furlough scheme. Employees have to work a minimum of 33 per cent of their hours, the remaining hours not worked, will be paid a third by the Government and a third by the employer. So employees working 33 per cent of their hours will receive at least 77 per cent of their pay.

VAT Deferral: Where a businesses has deferred their VAT, they will no longer have to pay a lump sum at the end of March next year. They will have the option of splitting it into smaller, interest free payments over the course of 11 months – benefitting up to half a million businesses. The Government has also extended the 15% VAT reduction for the tourism and hospitality sectors to the end of March 2021.

Bounce Back Loans: the deadline to apply for the loans has been extended to 30 November ensuring even more businesses can benefit from government-backed support. The term in which they need to be repaid can also be extended from 6 to 10 years.

Kick Start Scheme: funding to employers to create new 6-month job placements for young people, 100% of the relevant National Minimum Wage for 25 hours a week plus £1,500 per placement for set up costs. If you’re organisation would like to benefit from the Governments Kickstart Scheme register your details here.

While these measures don’t solve all of your business problems we will be putting on a special online workshop to support you through these changes. Our webinar will take you through each step of developing your business and how to implement our Business Growth Calculator with your own numbers and so you can focus on what is happening and look the potential huge profits you could make in your business.

Date: Wednesday 7th October 2020, 12pm

To register for this free session CLICK HERE

The key things we will be focussing on are:

1. Know your numbers
2. Understand your strengths
3. See where the money is coming from
4. Have the right processes in place
5. Have the right systems and equipment
6. Grow your profits by up to 60%

Regards
James Vincent
Performance Director