Pandemic-hit Firms Can Defer Contributions

Thursday, 4 November 2021 07:23

Jersey's Co-funded Payroll Scheme will not be extended again, but the government has announced 'additional support' for businesses worst-hit by the Covid-19 pandemic.

Wage subsidies expired at the end of October. Employers can make their final payroll claims this month.

Other support measures have been announced instead.

Businesses in the most affected sectors will be able to defer their employee Social Security contributions and GST for the rest of this year and the first quarter of next year, for five years.

The Business Disruption Guarantee Scheme, where the government guarantees 80% of loans up to £500,000, has been extended to the end of this year.

Treasury Minister Deputy Susie Pinel says the deferrals will give a high level of cash support in a much more even way and is available to all businesses in affected sectors.

“The CFPS was established as an emergency measure to protect employment when businesses were required to close. It has been extremely effective in meeting this objective.

As we are now in the recovery phase, there are new challenges facing businesses, including labour shortages, and we must ensure our business support measures are adapted to these new circumstances.

Even in the most affected sectors, more than 85% of businesses no longer qualify for CFPS as they are recovering, but they may still face cash flow difficulties."

She adds that businesses should plan and invest with the confidence that the Payroll Scheme will be brought back if public health restrictions need to return in the future.

The Visitor Attractions and Events Scheme, Visitor Accommodation Support Scheme, and the Fixed Cost Support Scheme for those businesses connected to events, will run until March 2022