Five-year deferral of Social Security and GST for companies in difficulty – Community News
Social Security

Five-year deferral of Social Security and GST for companies in difficulty

Treasury Secretary Susie Pinel said the co-funded salary scheme could be reintroduced if conditions worsen.
Treasury Secretary Susie Pinel said the co-funded salary scheme could be reintroduced if conditions worsen.

Businesses and individuals who continue to see their profits plummet due to the pandemic and travel disruption may defer their employer and employee Social Security contributions – 12.5% ​​of total payroll costs – and GST for the last quarter of 2021 and the first quarter of 2019. 2022 for five years.

The move follows the termination of the co-funded payroll, with struggling companies receiving subsidies to pay their staff’s wages, late last month.

The business disruption loan guarantee scheme, under which the government underwrites 80% of loans up to £500,000, has also been extended to 31 December 2021, with three other support schemes, providing up to 80% of fixed costs, until March 2022.

Treasury Secretary Susie Pinel said the co-funded salary scheme could be reintroduced if conditions worsen.

She said: ‘The CFSP was created as an emergency measure to protect jobs when companies had to close. It has been extremely effective in achieving this goal.

“As we are now in the recovery phase, companies face new challenges, including labor shortages, and we need to ensure that our business support measures are adapted to these new circumstances.

Even in the most affected sectors, more than 85% of companies are no longer eligible for CFPS as they recover, but they may still face cash flow problems.

“Postponement will provide a high level of cash support in a much more even manner and is available to all businesses in the affected sectors.

“We are also determined to review our support measures and businesses should plan and invest in confidence that the CFSP will be reintroduced if public health restrictions are needed again in the future.”

Economic Development Secretary Lyndon Farnham said the government will continue to support “companies worst hit by the pandemic and still working through the recovery phase”.

“While conditions have largely changed for the better, pressure on some sectors remains high,” he said.

The Visitor Attractions and Events Scheme, the Visitor Accommodation Support Scheme and the Fixed Cost Scheme for Businesses Associated with Events will run through March 2022 and the additional support announced today will help businesses manage the recovery process as we move forward. go to 2022. ‘

Companies that want to defer their Social Security contributions and GST payments must apply to the government. Further details will be issued by Revenue Jersey.