COVID-19: latest Government update
On Friday last, Chancellor Rishi Sunak announced what could be viewed as an unprecedented update in response to the ongoing crisis, which should have a positive affect on all of our clients and, for that matter, all people and businesses across the nation. This latest update is summarised as follows:
The new Coronavirus Job Retention Scheme will enable every employer across the country to access a grant from HMRC that will cover 80% of employee wages costs, up to a limit of £2,500 per month
This scheme will be backdated to 1 March 2020
The scheme is for an initial 3-month period although Mr Sunak has promised that this will be extended as and when it is deemed to be necessary, with no limits
It is expected that the first grants will be paid within weeks, with the scheme to be up and running in full by the end of April
The previously announced Coronavirus Business Interruption Loan Scheme will now have an interest-free period of 12 months rather than 6, with these loans being made available from today (Mon 23 March)
No VAT payments will be payable before the end of June, with these deferred payments being instead due at the end of the financial year
The Universal Credit standard allowance is increasing, for the next 12 months, by £1,000 per year, as is Working Tax Credit basic element
The minimum income floor for the self-employed is suspended, meaning that all self-employed workers can access, in full, Universal Credit at a rate equivalent to Statutory Sick Pay for employed workers
Self-assessment income tax payments which were due by 31 July are deferred until January 2021
For those who reside in rented property, at least 30% of the market rents will be covered by the Local Housing Allowance
In my opinion, this is a significant move by the Government that provides hope that they will see us through this terrible current climate.
The exact intricacies of how and when the incentives will be actioned are still to be announced, but please be assured that we are keeping our ear to the ground in that regard and will provide updates as soon as we possibly can.
In the meantime, please remain vigilant and, above all, safe and healthy!