Coronavirus – Job Retention Scheme and Further Business Support (20/03/2020)
On Friday 20th March the UK Government announced it’s next set of support measures for the UK economy.
The most significant of these measures was the announcement that businesses would be able to recover 80% of salary of workers who have had to be ‘furloughed’ due to Coronavirus up to a maximum of £2,500 per worker per month.
This is a huge cheque that the Government are writing to try and encourage businesses not to let staff go but to keep them ‘on the books’ and paid in order to prevent mass unemployment and further economic hardship once we eventually emerge from under the Coronavirus cloud.
It will however take time for the Government to put in place mechanisms to allow businesses to access this funding.
Two further ‘automatic’ measures which have also been announced. Firstly they have deferred any Self Assessment on account payments due 31st July 2020, these will now be payable 31st January 2021 along with the balance of any 2019/20 tax. Secondly between 20th March 2020 and 30th June 2020 HMRC will not be collecting VAT payments (although they will process refunds), any VAT liabilities unpaid will not need to be paid until the end of the 2020/21 tax year.
Details of the above can be found here https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
There is still nothing in particular to support the self employed, the current message is to claim Universal Credit if you are eligible. Hopefully we will see some further support for self employed workers soon.