A fourth grant will be made available but will be tailored to respond to the ever-changing situation with coronavirus and will cover the period from February 2021 – April 2021.
Additional measures
Several additional measures were announced in order to help the UK return from the economic turbulence created by coronavirus, and include:
• Pay as You Grow flexible repayment system – This will allow those businesses who took out a Bounce Back Loan a longer period in which to repay their loans. The length of the loan will be extended from six years to ten. Interest-only periods and payment holidays will also be offered to help those businesses that may struggle to repay • Coronavirus Business Interruption Loan lenders are able to extend the length of loans from a maximum of six years, to ten, to help businesses repay their loans • Temporary VAT cut extended – Businesses in the tourism and hospitality sectors will see the temporary 15% VAT cut extended until the end of March 2021, as they are the sectors most impacted by coronavirus • New Payment Scheme – Businesses who deferred their VAT bills are being given the option to repay in smaller instalments. As opposed to paying a lump sum at the end of March 2020, they will be able to make 11 smaller interest-free payments in the financial year 2021-22 • Self-assessment taxpayers will be given a separate additional 12-month extension from HMRC on the “Time to Pay” facility. This means that payments deferred from July 2020, and any due in January 2021, will now not be payable until January 2022
The plan can be read in full here.
CIPP comment
Whilst further information has been promised, we have been in touch with HMRC already with a growing list of questions – if you have any more questions or, indeed, any comments on today’s announcements, please contact the Policy team at policy@cipp.org.uk.
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The government announces the cancellation of the Autumn Budget 25 September 2020
Shortly after it was announced that the Chancellor, Rishi Sunak, would be unveiling his Winter Economy Plan, the news that the Autumn Budget 2020 would be cancelled then followed.
As the furlough scheme is set to end on 31 October 2020, the government is facing mounting pressure to help secure the economy and protect jobs following the coronavirus crisis, and the further restrictions imposed earlier this week. Employers and trade unions are warning that more than one million jobs could be at risk unless new support measures are introduced.
Mr Sunak will be updating MPs on his plan to “continue protecting jobs” as part of his Winter Economy Plan, but why has the Autumn Budget 2020 been cancelled?
The Treasury confirmed, in a statement, "As we heard this week, now is not the right time to outline long-term plans - people want to see us focused on the here and now. So, we are confirming today (23 September) that there will be no Budget this autumn” The next Budget was due to be delivered by the Chancellor this Autumn, however, a specific date was not confirmed. On 8 July 2020, the Chancellor delivered his Spring Statement which included the measures of Eat Out to Help Out, the Kickstart Scheme and a cut to stamp duty to name but a few. His first Budget, which was originally due to be delivered in November 2019, was also delayed, and not unveiled until 11 March 2020. The delay to that budget was due to the general election that took place, in December 2019. This was a matter of weeks prior to the new tax year and the CIPP wanted to assess the impact that this delay had on the payroll departments of its members, if any.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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