COVID 19 Business Support: The Latest Updates
As the COVID-19 pandemic continues to escalate, the government is continuously introducing measures to support businesses across the country in a bid to protect the UK economy.
With information circulating the internet, it can be difficult for businesses to follow exactly what is available to them. So, following on from our recent blog, we look at the support that was announced on Friday 20th March 2020.
Coronavirus Job Retention Scheme
- All UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis.
- HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month.
Deferring VAT and Income Tax payments
- VAT deferral apply from 20 March 2020 to 30 June 2020
- Automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
- Income tax payments due on 31 July 2020 will be deferred to 31 January 2021
Coronavirus Business Interruption Loan Scheme
The interest free period announced prior to the 20th March has been extended to 12 months rather than 6 months.
There has been an increase in the Universal Credit standard allowance, for the next 12 months, by £1,000 a year.
Working Tax Credit
There has been an increase of the Working Tax Credit basic element by the same amount as Universal Credit.
Suspension of the minimum income floor for Universal Credit
Self-employed people can now access, in full, Universal Credit at a rate equivalent to Statutory Sick Pay for employees.
We strongly recommend that you watch the daily government announcements in order to stay ahead of the support available, and visit https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses to find out how to apply.
Of course, you can email your Shenward account manager or firstname.lastname@example.org