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Three is the magic number

Rishi Sunak appears to be taking a continental approach to the Job Support Scheme, says our expert Robert Pullen.

Rishi Sunak appears to be taking a continental approach to the Job Support Scheme, requiring an employee to work 33% of their hours (minimum), with the employer and Government sharing the pay for remaining hours not worked a third each, at a capped amount, says Robert Pullen.

Whilst this is of course good news, here are the three areas Rishi has missed out on:

  1. Supporting the thousands of business owners who operate through a company and draw dividends – they largely missed out in the first round of support and remain side-lined now.
  2. Setting out a longer-term vision. What will happen in six months? Is the Government committed to support jobs and businesses well into next year? Rishi should have committed to stopping the U-turns and instead provide an environment that will enable businesses and individuals to plan not just for the next six months, but for the next two years.
  3. Although the VAT ‘lump sum’ payment in March has been recognised as being a massive hurdle (and rightly it is now being spread out), no thought has been given to individuals who face a similar problem in January when both their delayed payment on account from July 2020, the balance due for the 2019/20 tax year, plus the first payment on account towards 2020/21 will be due at the same time. A pay-monthly option should be available for those individuals affected

We hope these issues can be addressed as soon as possible.

Would you like to know more?

If you would like to discuss any of the above guidance, please contact Robert Pullen or your usual Blick Rothenberg contact.

For any press queries, please contact David Barzilay whose details are to the right.

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