The Chancellor has announced a very significant package of financial support available to businesses to help limit the impact of the Covid-19 virus on employees.
Full details will follow shortly, but the headlines are as follows:
Coronavirus Job Retention Scheme
HMRC will provide grants to cover 80% of the costs of employees who are not working due to coronavirus shutdowns but who have not been laid off. The scheme will cover up to £2,500 per month for each eligible employee. The scheme will run for an initial 3 months, backdated to 1st March 2020.
The application process is being established now and it is anticipated that the grants will start to be paid by the end of April at the latest.
Coronavirus Business Interruption Loan Scheme
The interest-free element of these loans has been extended from 6 months to 12 months. These loans will be available from Monday 23rd March
Chancellor has deferred the next quarter of VAT payments so no business will pay VAT until the end of June and businesses will have until the end of the financial year to make these payments.
The government has suspended the minimum income floor meaning that the self-employed will be able to access Universal Credit in full, at the same level as Statutory Sick Pay for employees.
The government has also deferred the payment of the next self-assessment payment until January 2021.