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Coronavirus - Financial support measures

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Summary

Chancellor Rishi Sunak has released financial support measures to help businesses survive the COVID-19 crisis. To help you understand these measures, we've put together key information covering the Job Retention Bonus, the Kickstart Scheme, the Job Support Scheme and deferral of VAT payments.

Description

Chancellor Rishi Sunak has released financial support measures to help businesses survive the COVID-19 crisis. To help you understand these measures, we've put together key information covering the schemes.

The Government has announced that the Coronavirus Job Retention Scheme (CJRS) - also known as the Furlough scheme, has been extended until 31 March 2021.

This means the Job Support Scheme (JSS), which was scheduled to come in on Sunday 1 November, has been postponed until the furlough scheme ends.

In addition, the Jobs Retention Bonus (JRB) will not be paid in February and the Government will redeploy a retention incentive at the appropriate time.

Resolution

Coronavirus Job Retention Scheme (CJRS) 

The Government has announced that the Coronavirus Job Retention Scheme (CJRS) - also known as the Furlough scheme, has been extended until 31 March 2021.

This scheme has been set up to support employers whose businesses have been affected by Coronavirus and help them continue to pay the wages of staff who would otherwise have been let go. All UK businesses, including charities, are eligible for the extended Job Retention Scheme. 


The Job Support Scheme

Due to the extension of the Job Retention Scheme, the Job Support Scheme (JSS), which was scheduled to come in on Sunday 1 November, has been postponed until the furlough scheme ends.


The Job Retention Bonus

In addition, the Jobs Retention Bonus (JRB) will not be paid in February and the Government will redeploy a retention incentive at the appropriate time.


The Kickstart Scheme

A £2 billion fund to create thousands of 6-month work placements across England, Scotland and Wales. It's aimed at 16 to 24 year olds who are on Universal Credit and deemed to be at risk of long term unemployment.

Eligible 16 to 24 year olds are matched with placements and they then contact the relevant employer. The employer can choose to employ the person or not. The funding will be provided once they're employed and being paid via PAYE.


UK deferral of VAT payments

UK VAT registered businesses were able to defer VAT payments that were due between 20 March 2020 and 30 June 2020 until a later date, without paying any interest or penalties.

On 24 September 2020, the Chancellor announced that businesses who took advantage of this deferral will now have the option to pay in equal instalments up until the end of March 2022, interest free.