Following our previous update on 8th September, please find below notable changes that have been released via gov.uk.

Changes to Coronavirus Job Retention Scheme (CJRS)

From 1^st ‌ October, HMRC will pay 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work.

You will continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. You will need to fund the difference between this and the CJRS grant yourself.

You’ll also continue to pay your furloughed employees’ National Insurance and pension contributions from your own funds.

Job Support Scheme

A new Job Support Scheme will be introduced from ‌‌1^st‌ November to protect jobs where businesses are facing lower demand over the winter months due to coronavirus (COVID-19).

Under the scheme, which will run for six months, the government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand.

You will continue to pay the wages for the hours your staff work.

For the hours not worked, you and the government will each pay one third of their usual wages (capped at £697.92 per month).

You will need to meet your share of the pay for unworked hours and all your National Insurance contributions and statutory pension contributions, from your own funds. This means that employees will receive at least two thirds of their usual wages for the hours not worked.

To be eligible, employees must:

 – be registered on your PAYE payroll on or before 23rd September 2020. This means a Real Time Information (RTI) submission notifying payment in respect of that employee must have been made to HMRC on or before 23rd September 2020

 – work at least 33% of their usual hours. The government will consider whether to increase this minimum hour’s threshold after the first three months of the scheme.

The Job Support Scheme will be open to employers across the UK even if you have not previously applied under the Coronavirus Job Retention Scheme (CJRS) which closes on 3‌1st‌‌ ‌‌October.

The Job Support Scheme will start from 1‌‌ November and you will be able to claim in December.

Grants will be paid on a monthly basis.

The scheme will operate in addition to the Job Retention Bonus. As detailed in Update 15 and Update 17 (9^th July and 10^th August). You and your employees can benefit from both schemes in order to help protect viable jobs.

Extension to the reduced rate of VAT for Hospitality and Tourism

The government has extended the temporary reduced rate of VAT (5%) to tourist attractions and goods and services supplied by the hospitality sector.

This relief came into effect on 15th July 2020 and will now end on 31st‌‌ March 2021.

VAT Deferral New Payment Scheme

If you deferred payments that were due between 20th March and 30th June 2020, the original guidance required that these payments needed to be made to HMRC by 31‌st March 2021.

The New Payment Scheme allows you to spread these payments over equal instalments up to 31‌‌st March 2022 if necessary.

Alternatively, you can make payments as normal by 31st‌‌ March 2021 or make Time To Pay arrangements with HMRC if you need more tailored support.

New Self-Assessment Time to Pay Scheme

If you deferred paying your July 2020 Payment on Account, you will need to pay the deferred amount, in addition to any balancing payment and first 2020/21 Payment on Account, by 3‌1‌‌st ‌‌January 2021. This may be a larger payment than you usually pay in January.

If you’re unable to pay your Self-Assessment bill in full by 31st‌‌ January 2021, you can set up a Time to Pay payment plan of up to 12 months online without speaking to us through https://www.gov.uk/difficulties-paying-hmrc.