Last week, Chancellor of the Exchequer Rishi Sunak unveiled further measures of COVID19 support for the upcoming Winter period. But what should games businesses make note of in the Winter Economy Plan?
Employment
It was confirmed that the furlough scheme (Job Retention Scheme) would be coming to a close on 31 October 2020.
In its place, the Job Support Scheme will be introduced from 1 November 2020.
The Job Support Scheme is aimed at business impacted by Coronavirus who may need more time for demand to recover. The Government will pay a third of hours not worked up to a cap of £697.92 per month , with the employer also contributing a third. This means that employees earn a minimum of 77% of their wages where the government contribution has not been capped. Businesses will be reimbursed in arrears for the government contribution.
Employers will be allowed to use both the Job Support Scheme and the Job Retention Bonus.
Extensions were also announced for the Self Employed Grant Scheme, with two grants lasting for six months from November to April.
Business Loans
Payments for the Bounce Back Loans and Coronavirus Business Interruption Loans will be made easier, with loans being able to be extended for up to ten years, allowing lenders to give people more time to pay.
In addition to this, the deadline for applying to four key temporary loan schemes (Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, Coronavirus Large Business Interruption Loan Scheme, Future Fund) will be extended to 30 November 2020.
VAT
Businesses which deferred VAT due in March to June 2020 will have the option to spread their payments over the financial year 2021-2022.
Interested in seeing a list of government support available? Check out our COVID19 round-up here.