Covid winter rescue plan: What you need to know
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.
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Thanks for the summary - very helpful just to get the basics of this in terms of the tax payments in particular
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.
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.
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.
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.
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.
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.
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.
Small point, but guidance says the JRS requires employees to work 33% of their hours, not 1/3rd.