COVID-19 Business updates for 20th March

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 pcm 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.

Coronavirus Business Interruption Scheme

The Business Interruption Loan Scheme, whereby the Government will guarantee up to 80% of the value (up to £5m) of loans introduced, will now be interest free for 12 months and will be available from Monday 23rd March.

The Chancellor advised that more measures would be announced during week commencing 23^rd March to ensure that medium and larger businesses can also access this.

Deferral of VAT Payments

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.

Self Employed

The self-employed will now be able to access universal credit, in effect, providing them access to statutory sick pay (SSP).

Tax payments for the self-employed will also be deferred until the next self-assessment date (January 2021).