THE GOVERNMENT IS GOING TO STEP IN AND HELP PAY PEOPLE’S WAGES
- The Job Retention Scheme has been extended for four months until the end of October.
- Government grants will cover 80% of the salary of retained workers, up to a total of £2,500 a month, that’s above UK median earnings level.
- Claim for furloughed employees that were employed and on their PAYE payroll on or before 19 March 2020.
- The scheme, open to any employer in the country, will cover the cost of wages backdated to March 1st
- There's no limit on the funding available for the scheme, we will pay to support as many jobs as needed.
- Increasing the Universal Credit standard allowance, for the next 12 months, by £1,000 a year. The Working Tax Credit basic element will also increase by the same amount.
- Apprentices can be furloughed in the same way as other employees and can continue to train whilst furloughed.
They must be paid at least the Apprenticeship Minimum Wage, National Living Wage or National Minimum Wage
- More information on for employers can be found here
SUPPORT FOR THE SELF EMPLOYED
- Like employees, self-employed people will be eligible for grants of up to 80% of average profits, up to a total of £2,500 a month for an initial period of three months
- It is open to those who make most of their income from self-employment and have filed a 2018/19 tax return
- There will be a 4 week window, until 23 April 2020, for people to submit 2018/19 tax returns and still be eligible
- It will be based on the average profits over the last three years (or, less if you haven’t traded for three years)
- Those eligible will be contacted by HMRC as soon as the scheme is live
- First payments will likely be made in early June (earlier if possible) but WILL be backdated to 1st March
- the Chancellor announced that the Government are working ahead of time to deliver the Self-employed Income Support Scheme and, from this Wednesday, it will be open for applications. This will see much needed financial support for the self-employed delivered ahead of time.
Head to https://gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme#eligible to check you’re eligible to claim and, receive payment by the 25th May.
More information can be found here https://www.businesssupport.gov.uk/self-employment-income-support-scheme/
If you are struggling now, we have introduced a number of schemes which can help:
- You can access Business Interruption Loans, interest free, which could tide you over until June. More info can be found at: https://www.businesssupport.gov.uk/
- You can now access, in full, Universal Credit at a rate that is equivalent to Statutory Sick Pay for employees
- Income tax self-assessment payments for July have been deferred until the end of January 2021, so the money you would usually pay in tax in July may be available to you
HOMEOWNERS AND RENTERS
- Mortgage lenders will offer a 3 month mortgage payment holiday.
- For renters, in addition to emergency legislation to suspend new evictions, there will be nearly £1bn of support by increasing the generosity of housing benefit and Universal Credit, so that the Local Housing Allowance will cover at least 30% of market rents in your area.