03 November 2021
The Government is announcing additional support for businesses affected by the pandemic and travel disruption, following the expiry of the Co-Funded Payroll Scheme (CFPS) at the end of October.
Businesses in the most affected sectors will be able to defer their employer and employee Social Security contributions (12.5% of total wage costs) and GST for the final quarter of 2021 and the first quarter of 2022, for five years.
In addition, the Business Disruption Loan Guarantee Scheme, where the Government guarantees 80% of loans up to £500,000, has been extended to 31 December 2021. Three other support schemes, which provide up to 80% of fixed costs, are continuing until March 2022.
The CFPS, established in April 2020, will close at the end of October, with businesses making their final claims during November.
The Minister for Treasury and Resources, Deputy Susie Pinel, said: "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. Deferrals will provide a high level of cash support in a much more even way and is available to all businesses in affected sectors.
"We are also committed to reviewing our support measures and businesses should plan and invest with the confidence that the CFPS will be reintroduced if there is a need for public health restrictions to return in the future."
The Minister for Economic Development, Tourism, Sport and Culture, Senator Lyndon Farnham, said: "We will continue to support businesses that were most severely affected by the pandemic and are still working through the recovery phase. Although circumstances have largely changed for the better, there remains considerable pressure on some sectors.
"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 and the additional support announced today will help businesses manage the recovery process as we move in to 2022."
Those businesses wishing to defer contributions and GST payments will need to make an application. Further details will be issued by Revenue Jersey in the coming weeks.