Coronavirus – COVID-19 update 20 March 2020
Here is an update on the latest announcements by the Government to help support business through the pandemic.
Coronavirus Job Retention Scheme
The Chancellor announced the Coronavirus Job Retention Scheme, which will be accessible for all businesses. The details of the scheme, so far are;
- The government will pay up to 80% of furlough workers’ salary (up to £2,500 per month)
- Furloughed workers are those who cannot work but are being retained so employers don’t have to recruit after the pandemic is over.
- This is a grant and the first grants will be paid in April. The scheme is expected to be up and running before the end of April
- The pay will be backdated to 1 March 2020
- The scheme will run for a maximum of 3 months and employees cannot work during that period.
Coronavirus Business Interruption Scheme
- The loans will now be interest free for 12 months, not the previously indicated 6 months. Details of how to apply should be out soon.
VAT payments will be deferred
- There will be no payments between now and the end of June
- Businesses will have until April 2021 to pay this back
- Details of how, is at all HMRC will adapt the VAT filing system for this are to be advised – e.g. will periods be closed? We assume DDs will not be taken by HMRC.
Other Coronavirus help
- The Chancellor also announced the Universal Credit standard allowance would be increased by 12% over the next 12 months
- The minimum income floor for Universal Credit will be suspended
- Self-assessment payments are deferred until January 2021 – so deferred payments on account which were due in July 20
- The Chancellor also announced a support package for renters to cover around 30% of market rents.
Emergency legislation is being brought forward for employees who are self-isolating because of coronavirus (COVID-19). They will be able to get SSP from the first day they are off work. This will begin from 13 March.
Wishing you well and keep an eye on government announcements, and sign up to updates here.