21st March 2020
On Friday 20th March, The Chancellor of the Exchequer announced a range of significant measures aimed at helping businesses across the UK deal with the effects that the COVID-19 pandemic is having on our economy.
- Coronavirus Job Retention Scheme
- All employers will be eligible
- The scheme will be available for all employees currently paid via PAYE
- Employers will be able to apply to HMRC for a grant to cover 80% of the wages of retained workers who are furloughed (i.e. given a leave of absence from work) because of the COVID-19 outbreak and are kept on the payroll rather than being laid off
- The scheme will be backdated to 1 March 2020
- The Coronavirus Job Retention Scheme will be open initially for 3 months but the Chancellor has said that it will be extended if needed
- HMRC are currently working on the implementation of this scheme and guidance is due soon. The aim is that the first grants will be paid within weeks and before the end of April
- Coronavirus Business Interruption Loan Scheme
- This scheme, launched previously by the chancellor, will now be interest free for 12 months rather than 6 months as initially intended
- The Business Interruption Loans Scheme is due to be available from the week commencing 23 March
- VAT
- VAT payments for the next quarter (i.e. the period from 20 March to 30 June 2020) will be deferred
- Taxpayers will have until the end of the tax year 2020/21 to pay any VAT liabilities that accumulate over the deferral period
More information about what the Chancellor announced can be found at:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Updated guidance for employers, businesses and employees is available at:
If you run a business or are self-employed and are concerned about paying your tax due to coronavirus, contact HMRC on 08000 0159 559
We will continue to share the most up to date information directly with you as it becomes available.
