GOVERNMENT PRESS BRIEFING 20/03/20 – KEY DEVELOPMENTS

Published Friday, 20th March 2020

Wages cover for businesses hit by virus outlined – read more here

  • Government will pay 80% of wages for employees kept on the payroll but not working, up to £2,500 per month
  • Applications will need to be made to HMRC
  • Any employer of any size is eligible
  • Aim is to have the scheme implemented before the end of April with payments commencing within the next couple of weeks
  • Initially open for three months, backdated to 1st March but chancellor has confirmed he will extend the scheme, which has no limit, if needed.
  • Scheme is expected to apply to anyone on a business payroll as of 29th February 2020

Coronavirus Business Interruption Loan – read more here

  • The loan scheme will now offer an interest free period of 12 months, extended from 6 months
  • The loans are expected to be available from Monday
  • VAT payments deferred
  • The next quarter of VAT payments for firms will be deferred until the end of June
  • Businesses will have until the end of the Financial Year to repay bills

Other

  • Universal Credit allowance and the Working Tax Credit basic element increased by £1,000 for the next 12 months
  • The next self-assessment tax payments will be deferred until January 2021
  • Self-employed will get full Universal Credit at a rate equivalent to statutory sick pay
  • Further £1bn of support by increasing housing benefit and Universal Credit so that the Local Housing Allowance will cover at least 30% of market rents.
  • Mr Sunak promises further measures next week to ensure larger and medium sized businesses will be able to access the credit they need

We’ll get back to all clients on what this means as soon as possible.



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