A little more detail...

Published October 2020

Good afternoon. As you may know the Chancellor has made a statement today, and as expected the Furlough Scheme is ending as expected.

Some initial changes are as follows:

1. The new jobs scheme helps all employees of small and medium companies who work at least 1/3rd of their hours (See below);
2. VAT already deferred and due in march can now be spread over 11 months;
3. Government loans can now be repaid over 10 years not 6; and,
4. Hospitality sector VAT to stay at 5% until March.

Job Support Scheme:

We know know more about how the job support scheme will work.... Let's say Colin comes back to work and he earns £2,000 FT, but has come back two days per week.

Two days is 40% of a working week, so that is £800. The employer will also pay 1/3rd of the balance (So 1/3rd of £1,200), which is £400. So, that is a total of £1,200 from the employer, on top of which the government support is a further 1/3rd of the balance. In total therefore Colin will get £1,600.

Income tax to pay?

Providing you owe less than £30,000 you will be able to spread your January 2021 income tax liability over 11 months... always assuming you can get through on the phone to HMRC to set up a payment plan.