Here we go again.......￡￡￡

Does anyone else feel like they've experienced a years worth of emotions in one week?

You know the drill, here goes today's financial support update:

Coronavirus Job Retention Scheme:

All UK employers will be able to access support to continue paying part of their employees' salary for those employees that would otherwise have been laid off during this crisis.

HMRC will reimburse 80% of the workers wage costs, up to a ￡2,500 per month.

This can be backdated to 1st March and initially will be open for 3 months. There is no limit on the amount of funding being placed in this scheme.

HMRC are working on setting up a new online portal and system for reimbursement.

Please note: This scheme needs careful attention alongside employment law as it requires a change in a workers employment status - do your research and get HR advice if in doubt.

Deferred VAT payments:

The next quarter of VAT payments is being deferred.

All UK businesses are eligible. This is automatic with no applications required. The deferral period is from 20 March 2020 until 30 June 2020. Businesses will not need to make a VAT payment during this period and will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. 

Deferred income tax payments:

For the self-employed, Income Tax payments due in July 2020 under the Self-Assessment system (payments on account) will be deferred to January 2021.

This is automatic with no applications required. If you are self-employed you are eligible and will not be charged any interest or penalties for not making your July payment on account so longs it is paid by 31 January 2021.

Business Interruption Loan Scheme:

The interest free period has been extended from 6 months to 12 months. These loans should be available from Monday.

Universal Credit:

The Universal Credit standard allowance, for the next 12 months, is increasing by ￡1,000 a year.

The minimum income floor for everyone affected by the economic impacts of coronavirus has been suspended, this means every self-employed person can now access, in full, Universal Credit at a rate equivalent to Statutory Sick Pay for employees, currently ￡94.25 per week.

Tax credits:

The working tax credit basic element will increase by ￡1,000 for the next 12 months.

Please note: Do your research / use the calculators available online before claiming universal credits if you already receive tax credits or before deciding whether to claim ESA and/or universal credits. As with most benefits, the individual circumstances of you and your family (savings / income levels etc.) can effect the amounts you are entitled to.

Support for rent costs:

You should check your eligibility for universal credits which is available for people in and out of work. Support for rental costs will be paid through Universal Credit.

From April local housing allowance rates will increase to the 30th percentile of market rents.

At the time of writing, this information is true and correct to the best of my knowledge, I have checked every element per official government guidance however, as we are now well aware, the situation is changing on a daily basis therefore care needs to be taken to ensure up to date guidance is followed. No reliance should be placed on the above article.

Samantha Mitcham - 20.03.20