Save content
Have you found this content useful? Use the button above to save it to your profile.
The Chancellor unveils his Winter Economy Plan
Flickr_WinterEconomyPlan_HMTreasury

Covid winter rescue plan: What you need to know

by

Chancellor Sunak revealed five measures to help businesses survive into 2021: a job support scheme, more SEISS grants, improved loan terms, further deferrals of tax payments and a continuation of the 5% VAT for the hospitality sector. 

24th Sep 2020
Save content
Have you found this content useful? Use the button above to save it to your profile.

Trick or treat came early this year as during “Not the Autumn Budget” Chancellor Rishi Sunak announced five broad areas to help businesses through the winter. The tricks, in the form of tax rises, are likely to be postponed until at least April 2021, but if anything is slipped through as changed regulations, we will let you know.

This is what we know so far about the new and improved business support packages, dubbed the winter economy plan. Follow the links below for more detailed articles.

Job support scheme

The current furlough scheme will end on 31 October, and the job support scheme comes into effect on 1 November, with the same aim of keeping employees working in real jobs for as long as possible. 

The job support scheme can apply to any employee who was on the payroll on 23 September 2020, so it is not restricted to employees who were furloughed at some point between March and October.

Register for free to continue reading

It’s 100% free and provides unlimited access to the latest accounting news, advice and insight every day. As well as access to this exclusive article, you can:


Content lock down, tick icon

View all AccountingWEB content


Content lock down, tick icon

Comment on articles


Content lock down, tick icon

Watch our digital shows and more

Access content now

Already have an account?

Replies (10)

Please login or register to join the discussion.

avatar
By mkowl
25th Sep 2020 09:22

Thanks for the summary - very helpful just to get the basics of this in terms of the tax payments in particular

Thanks (2)
Anthony Constantinou
By anthonyconstantinou
25th Sep 2020 09:25

This is quite an informative post guys. Everyone whether we talk about employee or employers, we all are facing trouble due to COVID-19 circumstance all around the world.

Thanks (1)
blue sheep
By NH
25th Sep 2020 09:32

I just do not see much value in the Job Support Scheme - the employer has to commit to paying a third of wages for time not worked, what small employer in their right mind would do that? Perhaps they might just do it in order to get the 1k Brucey Bonus but at best it is marginal.

Thanks (1)
Replying to NH:
avatar
By the_drookit_dug
25th Sep 2020 09:44

The employee must also, it seems, accept a pay cut. No good for employers who want to resist cutting wages but could do with help to ease the pain.

Thanks (0)
Replying to NH:
By SteveHa
25th Sep 2020 09:58

I agree. I don't see it being effective in preventing redundancies, and (possibly to change once the detail arrives), employees on zero hours seem to have lost out. Unless some new fangled method of calculating normal hours is announced, of course.

Thank heavens I no longer do payroll.

Thanks (0)
Replying to NH:
avatar
By Ian McTernan CTA
25th Sep 2020 12:22

The scheme is designed to preserve more highly skilled jobs where the company might be under capacity but keen to retain as many of it's highly skilled workers as it can- it's not designed for jobs that in reality no longer exist.

It's time people start to realise we cannot exist in limbo forever and the whole employment market is about to change, possibly permanently, and we are going to have a big recession and unemployment will spike. Travel, tourism, high streets, etc may never be the same again.

Thanks (2)
Replying to Ian McTernan CTA:
By SteveHa
25th Sep 2020 13:14

I don't necessarily see highly skilled jobs being protected either. Many such jobs are (subject to current IR35, but so outwith the scheme) are conducted through PSCs. As with the previous schemes, this will do nothing to help those.

Thanks (0)
Replying to SteveHa:
Chris M
By mr. mischief
25th Sep 2020 14:06

You either shut down sectors with daft measures and support them. Or let them open without daft measures and then take away the support. Instead of that, what we got yesterday was an Unemployment Creation Scheme. This will be worse than the last peak in 1986 in my view.

Thanks (0)
avatar
By Peter613
25th Sep 2020 14:26

Could be some interesting fall out if 4th SEIS grant based on 19/20 Sa returns

Thanks (0)
avatar
By Andy Reeves
30th Sep 2020 12:26

Small point, but guidance says the JRS requires employees to work 33% of their hours, not 1/3rd.

Thanks (0)