27th Mar
Graham Reid
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Financial Support Update – 27/03/2020

The Government has finally announced some further details to give some clarity around the measures it has brought forward to support the self employed and employees at this difficult time.

I will keep this mailing brief but would encourage everyone to read through the details in the attached links and if you need further clarification or support in completing any applications please give me a call. 

Job Retention Scheme

  • If you are no longer working as a direct result of the Corona Virus, an alternative to laying off your employees is to continue paying them 80% of what they would have normally received and reclaiming their costs from HMRC. This scheme will run for an initial 3 months but may be extended. You need to pay your staff upfront in the normal manner and the scheme should be functioning form the end of April to reclaim payments made.
  • If you run a Ltd Company and take a combination of payroll and dividends, then only the payroll element will be applicable for the scheme.
  • I have already spoken directly to all my payroll clients to agree their individual action plans but if you need any further guidance please get in touch
    Full details of this scheme are included within this attached link.

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Support For Businesses with Business Premises

 

Business Interruption Scheme

  • You can apply for a business interruption loan. The temporary Coronavirus Business Interruption Loan Scheme is open to self-employed people and offers access to loans, overdrafts, invoice finance and asset finance of up to £5 million for up to six years. The Government could also give you a Business Interruption Payment to cover the first 12 months of interest and fees on the loan.

The scheme is now open for applications, and is offered by all major banks. Read more on the Government’s Business Support website.

 

Income Support for the Self Employed

  • Last night the chancellor outlined his proposals to support the self employed through this crisis. The scheme is disappointingly not all inclusive and some people will be left behind ie those reporting average profits over the past 3 years of over £50k and those who have registered as self employed over the past 12 months and have yet to file a tax return.
  • You do not need to do anything at this stage as HMRC will contact everyone who is eligible in the coming weeks.
  • If your average profits reported are up to £50k then you will be entitled to 80% of these average profits in the form of a grant which is not repayable but will be added on to your taxable income on your next tax return.
  • The scheme is not expected to be open until June meaning self employed people could realistically be without income for over 2 months.
    Details currently available are included here

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

Universal Credit

  • In the interim an emergency payment can be requested through Universal Credit and ongoing support up to £94.25 per week plus housing benefit could be available. Follow the checklist below and you can apply online for this benefit.

https://www.gov.uk/how-to-claim-universal-credit

Obviously, there are lots of unanswered questions still and I have tried to include as much information as possible that i have available at this time.

Please read through the links and get in touch with anything that is unclear and I will try to help.

Martin Lewis is a good source of information and his website is very useful in not only giving sound direction of where to go for government help but also for practical advice on reducing your outgoings at this time. The website link is attached below.

https://www.moneysavingexpert.com/news/2020/03/uk-coronavirus-help-and-your-rights/

I will try and keep in touch with you all as much as I can over the coming weeks and months and hopefully this will be over sooner rather than later.

Take Care

Graham

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Categories: CoronaVirus

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