Following updates by Chancellor Rishi Sunak on 24 September 2020 and introducing the Winter Economy Plan, we have summarised the main points which will be of importance to our clients.


A new Job Support Scheme has been announced to replace the current Job Retention Scheme which is due to end on 31st October 2020.  The new Job Support Scheme starts on 1st November 2020 and will run for 6 months through to the end of April 2021.  How it will work:


The existing SEISS scheme for the self-employed is being extended for a further 6 months through to April 2021.  What’s being offered:


VAT cut for hospitality & tourism

The 15% reduction in VAT from 20% to 5% for the hospitality and tourism sector, which was due to end on 13th January 2021 has now been extended to 31st March 2021.


VAT Deferral

The government will launch a new payment scheme, which will give businesses who deferred VAT liabilities due between the period March to 31st May 2020, the option to spread these liabilities over the financial year 2021-22.  Originally due to be settled in full with a lump sum payment by 31st March 2021, the new payment scheme sets out:



Extension to application dates

The government has announced an extension of the application deadlines for each of the following to 30th November 2020:

Pay as you Grow

A new flexible repayment system has been announced to assist businesses with repaying their business loans and reduce pressure on finances.  Under the new Pay as you Grow options:

 Loan terms can now be extended from six years to ten years, which will effectively cut monthly repayments by almost half.


The government intends to extend their guarantee on these loans for up to ten years to allow CBILS lenders greater flexibility on repayment terms and provide businesses with more time to repay.




Enhanced Time to Pay for Self-Assessment taxpayers

The government will give self-assessment taxpayers additional time to settle taxes due in January 2021.  Guidance states:


Download a pdf version of Winter Economy Plan
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