20.3.20 - Chancellor’s new economic measures announced

·        Help to pay people’s wages by introducing Coronavirus Job Retention Scheme

All employers are eligible, and help will be accessed by employers contacting HMRC. HMRC will provide a grant to cover most of the wages of people who are not working, to keep them on the payroll and avoid them being laid off. Government grants will cover 80% of the salary of retained workers up to a total of £2500 per month.

This will cover the cost of wages backdated to 1 March 2020 and be open for 3 months but scheme will be extended if necessary. HMRC working hard to get scheme up and running and hope first grants to be paid in weeks.

·        Coronavirus Business Interruption Loan Scheme

Will now be interest free for 12 months instead of 6. Loans to be available starting from Monday 23 March 2020.

·        VAT payments will be deferred for the next 3 months  (but returns will still need to be filed)

Businesses will have until the end of the financial year (March 2021) to repay those bills.

·        Business rates abolished this year for those in hospitality, retail and leisure.

·        Universal Credit standard allowance increased by £1000 for the next 12 months.

·        Working Tax Credit basic element to increase by £1000 for the next 12 months.

·        Every self employed person to access Universal Credit at rate equivalent to statutory sick pay for employees.

·        Self assessment tax payments – payments usually required by 31 July 2020 will be deferred to 31 January 2021.

·        Everyone to have access to 3 month mortgage holiday as previously announced.

·        Support for renters by increasing housing benefit to ensure Local Housing Allowance will cover at least 30% of market rents.

More detailed advice on how to access all the above measures is being developed and finalised in the coming days.