Coronavirus Help

HMRC have introduced various means of help for the self-employed, employers, and businesses during the Coronavirus pandemic.

*NEW* On Wednesday 8th July, a ‘mini budget’ was announced. The Chancellor pledged to “protect, support and create jobs” and get pubs and restaurants “bustling again” as he unveiled a package to kickstart the economy’s recovery. He also announced a VAT cut for the hospitality industry, stamp duty holiday, restaurant discounts and a suite of measures to boost hiring as part of his mini-Budget. Here is a summary of the key announcements:

Self Employed

If you’re getting less work or no work because of coronavirus (COVID-19), you might be able to claim a grant through the coronavirus Self-employment Income Support Scheme.

This scheme has been extended. If you’re eligible for the second and final grant, and your business has been adversely affected on or after 14 July 2020 you’ll be able to make a claim from 17 August 2020. You can make a claim for the second grant if you’re eligible, even if you did not make a claim for the first grant.  Check if you’re eligible.

Employers

‘Flexible Furlough Scheme’ – As of 1st July, employers are able to bring furloughed employees back to work on a part time basis.  Key dates relating to the furlough scheme are as follows:

  • From 1st July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked.
  • From 1st August 2020, employers will need to pay the National Insurance (NI) and pension contributions for furloughed employees.
  • From 1st September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will need to top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, and will continue to pay NI and pension contributions for furloughed employees.
  • From 1st October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will need to top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, and will continue to pay NI and pension contributions for furloughed employees.
  • The scheme will close as of 31st October 2020.
  • Employers will receive a £1,000 bonus in January 2021, for each employee they have brought back from furlough and continues to employ during November, December and January.  For businesses to get the bonus, the employee must be paid at least £520 on average, in each month from November to the end of January, which is the equivalent of the lower earnings limit in national insurance.

 

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