The Government have announced several updated packages of financial support for employers and businesses. Whilst announcements can be ‘headline grabbing’, details can take several days to emerge. We will endeavour to update information as and when available.
JOB RETENTION SCHEME – set up to enable employers to pay employees salaries for employees who would otherwise have been laid off. The employer will designate the employee as a ‘furloughed worker’ and notify the employee. They will also notify HMRC of this through a new HMRC Online Portal, details to be announced. HMRC will reimburse 80% of the wage cost, up to £2,500, per month. The system to do this is still to be announced. It is planned to backdate this to 1st March 2020.
SHORT TERM BUSINESS LOANS – Businesses can apply for short term business loans of up to £5million. These are interest free for twelve months. All major banks will provide these, and they should be available this week. https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/
VAT DEFERMENT – VAT quarter payments have been deferred until 30th June 2020. This is automatic, and there is no need to apply.
SELF-ASSESSMENT – Self-assessment payments due on 31st July 2020 have been deferred to 31st January 2021. This is automatic, and there is no need to apply. HMRC will not charge penalties or late payment interest on these deferred payments.
UNIVERSAL CREDIT/WORKING CREDIT – these have been increased by £1,000 per year for 12 months. Self-employed individuals will be able to claim Universal Credit if off sick due to Covid-19. This will be paid from day one, at the same rate as Statutory Sick Pay. The Universal Credit minimum income floor has been removed.