On Friday evening the Chancellor confirmed the following support for businesses:
1. The creation of a new Coronavirus Job Retention Scheme
The scheme will mean any employer in the country, irrespective of size, including charitable organisations and not for profit organisations, will be eligible to apply. Employers can contact HMRC for a grant to cover 80% of wages of people who are not working but are retained on payroll, rather than being laid off. This will extend up to £2,500 per month per employee.
The Coronavirus Job Retention Scheme will be backdated until 1st March 2020, and available for at least three months, with the Chancellor confirming that this period will be extended if required, and that unlimited funding will be made available for the scheme. He advised that the first grants will be paid within a matter of weeks, and at the very latest before the end of April.
In the meantime, the Chancellor reminds business about the availability of the Coronavirus Business Interruption Loan Scheme (‘CBILS’) in the interim period, whilst also confirming that the interest free period for CBILS will be extended from 6 months to 12 months, with funds being made available from Monday 23 March 2020. The Chancellor advised that more measures would be announced during w/c 23 March 2020 to ensure that medium and larger businesses can also access CBILS.
2. Deferral of the next VAT quarter payment
The Chancellor confirmed that he would be deferring the next VAT quarter payment until end of June 2020, which in real terms means that VAT incurred during this period will not be payable until the end of the 20/21 financial year.
3. Universal Credit changes
An increase in the level of Universal Credit by raising the standard allowance for the next 12 months by £1000 a year.
4. Working Tax Credit changes
An increase in the level of the Working Tax Credit basic element for the next 12 months by £1,000 per year.
5. Support for the self employed via Universal Credit
Extending Universal credit to the self employed by strengthening the minimum income floor for all those affected by the impact of COVID-19, meaning that self employed can access Universal Credit at a rate equivalent to statutory sick pay for employers.
6. Deferral of Self Assessment Payments
By deferring self assessment payments until January 2021.
7. Support for those living in rented accommodation
To support those who live in rented accommodation by increasing local housing allowance to ensure it covers at least 30% of market rents in all areas.
More information and details of how to apply will follow.
In the meantime if you do have any queries please do not hesitate to contact me.