Any employer with a PAYE scheme will be able to pay any employers who would otherwise be laid off during the crisis. Employees who are asked to stop working but kept on the payroll will be classed as ‘furloughed workers’ and HMRC will reimburse the employer 80% of each employees monthly salary up to £2500 per employee per month. You can find more information here
Statutory Sick Pay relief package for small and medium sized businesses (SMEs)
Legislation is being introduced to allow small & medium sized employers to reclaim statutory sick pay (SSP) which will cover up to 2 weeks SSP per employee who has been off work because of COVID-19. Records of absences must be maintained, and this scheme applies to any employer with less than 250 employees as of 28th February 2020. The details of this scheme and how employers will be reimbursed is still being developed.
All UK businesses and VAT registered individuals are eligible for this scheme and do not need to apply. Neither VAT registered business or individuals need to make a payment of any VAT due between 20th March and 30th June 2020 and will have until 5th April 2021 to pay any VAT that was deferred from the period. HMRC will continue to issue refunds in the normal way. Should you wish to pay any VAT due this can be done in the normal way.
- VAT returns due in this period must still be filed on time.
- Any direct debit that is in place to pay HMRC VAT should be cancelled.
Find more information here
Deferring Income Tax payments
Self-assessment income tax payments that are due for payment on the 31st July 2020 may be deferred until the 31st January 2021 with no penalties. You can find more information here
Self-employment Income Support Scheme (SEISS)
This scheme covers self-employed individuals or members of partnerships who have lost income due to the coronavirus. The scheme allows the individual to claim a taxable grant worth 80% of your average trading profits up to a maximum of £2500 for 3 months. This scheme will be extended if required. You can find more information here. If you require money urgently then you may be eligible for Universal Credit. Details and how to apply can be found here.