The HMRC pages detail all the support available to all businesses:
COVID-19: support for businesses - GOV.UK
And the support available to employees:
COVID-19: guidance for employees - GOV.UK
Remember, there is still the Time to Pay service in place. A dedicated Coronavirus service is in place:
Coronavirus (COVID-19) helpline - GOV.UK
If you need to get an isolation note because you are ill, go to this page on the NHS 111 site:
NHS 111 Online - About coronavirus (COVID-19)
If you live with someone with symptoms and need an isolation note, get it from this page on the NHS main site:
Self-isolation advice - Coronavirus (COVID-19)
- NHS
The help available is determined by the type of worker you are:
1.Employed directly by a company (not an umbrella)
If your company ‘furloughs’ your role they can claim the CJRS grant from the government. Your employer may be nice and pay you the extra 20% so you lose nothing but they are not obliged to do so. The company cannot ask you to do any work while your role is in this state. This grant can be backdated to 1 March 2020 and is initially designed to be available for three months.
HMRC have issued guidance to employees to help them understand the scheme and what your options are:
https://www.gov.uk/guidance/check-if...tention-scheme
If your role is not furloughed but you are instructed to take time off sick (because you are ill or need to isolate) you are entitled to statutory sick pay from day one. Your employer can choose to pay your usual salary but they are not obliged to do so. Check your employment contract and talk to HR.
https://www.gov.uk/statutory-sick-pay
If you have been with the company >24 months and are laid off, you are entitled to statutory redundancy pay. Less than this, and you are only entitled to be paid your notice period. You will then need to claim universal credit.
2.Employed by an umbrella company
This is unclear at present. Needs input from the Umbrella companies.
In theory, if the client furloughs the role with intent to start it up again, the umbrella could claim the CJRS grant from the government and pay it over to you less all the usual deductions.
If your role is not furloughed but you are instructed to take time off sick (because you are ill or need to isolate) you are entitled to statutory sick pay from day one.
If the client cancels your contract, you can claim universal credit. You are not entitled to statutory redundancy pay and it’s hit and miss whether the client will pay your notice period (a topic discussed in depth elsewhere).
3.Self-employed (not a Ltd company owner)
You can defer the self-assessment payment due on 31 July 2020 to 31 January 2021. You do not need to tell HMRC you are doing this. You will not incur any interest or penalties if you choose to defer the payment.
You can apply for a grant from the self-employment income support scheme if you’re a self-employed individual or a member of a partnership and you:
• have submitted your Income Tax Self-Assessment tax return for the tax year 2018-19
• traded in the tax year 2019-20
• are trading when you apply, or would be except for COVID-19
• intend to continue to trade in the tax year 2020-21
• have lost trading/partnership trading profits due to COVID-19
Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:
• having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
• having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period
If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.
This scheme is not yet available. HMRC will contact you if you are eligible for the scheme and invite you to apply online.
https://www.gov.uk/guidance/claim-a-...support-scheme
Article on AccountingWeb that gives more clarity on eligbility and how the scheme will work:
https://www.accountingweb.co.uk/tax/...-details-right
You may be able to claim universal credit, if you meet the criteria:
https://www.gov.uk/self-employment-and-universal-credit
Also check the links in section 4 below as some of these measures are also available to the self-employed.
4.Owner of Limited Company
You can defer the self-assessment payment due on 31 July 2020 to 31 January 2021. You do not need to tell HMRC you are doing this. You will not incur any interest or penalties if you choose to defer the payment.
Options available include the below but do check the link at the top for everything that’s available:
• Coronavirus Job Retention Scheme
You may be able to claim the CJRS grant, of 80% of salary up to £2500 per month, if you are operating a PAYE scheme. If you are paying yourself a minimal wage, then the amount you can claim will be very small.
https://www.gov.uk/guidance/claim-fo...tention-scheme
Futher scheme details were published on 13 April. See post #8, below, for the latest information.
• Deferring VAT payments
If you have a payment due between 1 March and 30 June, you can defer it. Make sure your VAT return is submitted on time, as usual. There is no need to tell HMRC you are deferring the payment. Information about how/when to pay the deferred VAT is not yet available.
https://www.gov.uk/guidance/deferral...virus-covid-19
• Business Interruption Loan Scheme
The temporary Coronavirus Business Interruption Loan Scheme supports SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.
The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.
The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank.
There are 40 accredited lenders able to offer the scheme, including all the major banks
https://www.british-business-bank.co...-and-partners/
• Bounce Back Loan Scheme
Launched on 4 May
See separate post below for details
https://www.contractoruk.com/forums/...ml#post2767974
=======
CHANGE LOG
This post will be updated with latest information and validated feedback as it becomes available. Changes will be in blue.
07-APR: Added extra information to sections 1 and 3
13-APR: Link added to updated post #8 with info on CJRS
04-MAY: Added information about the Bounce Back Loan Scheme (BBLS)
COVID-19: support for businesses - GOV.UK
And the support available to employees:
COVID-19: guidance for employees - GOV.UK
Remember, there is still the Time to Pay service in place. A dedicated Coronavirus service is in place:
Coronavirus (COVID-19) helpline - GOV.UK
If you need to get an isolation note because you are ill, go to this page on the NHS 111 site:
NHS 111 Online - About coronavirus (COVID-19)
If you live with someone with symptoms and need an isolation note, get it from this page on the NHS main site:
Self-isolation advice - Coronavirus (COVID-19)
- NHS
The help available is determined by the type of worker you are:
1.Employed directly by a company (not an umbrella)
If your company ‘furloughs’ your role they can claim the CJRS grant from the government. Your employer may be nice and pay you the extra 20% so you lose nothing but they are not obliged to do so. The company cannot ask you to do any work while your role is in this state. This grant can be backdated to 1 March 2020 and is initially designed to be available for three months.
HMRC have issued guidance to employees to help them understand the scheme and what your options are:
https://www.gov.uk/guidance/check-if...tention-scheme
If your role is not furloughed but you are instructed to take time off sick (because you are ill or need to isolate) you are entitled to statutory sick pay from day one. Your employer can choose to pay your usual salary but they are not obliged to do so. Check your employment contract and talk to HR.
https://www.gov.uk/statutory-sick-pay
If you have been with the company >24 months and are laid off, you are entitled to statutory redundancy pay. Less than this, and you are only entitled to be paid your notice period. You will then need to claim universal credit.
2.Employed by an umbrella company
This is unclear at present. Needs input from the Umbrella companies.
In theory, if the client furloughs the role with intent to start it up again, the umbrella could claim the CJRS grant from the government and pay it over to you less all the usual deductions.
If your role is not furloughed but you are instructed to take time off sick (because you are ill or need to isolate) you are entitled to statutory sick pay from day one.
If the client cancels your contract, you can claim universal credit. You are not entitled to statutory redundancy pay and it’s hit and miss whether the client will pay your notice period (a topic discussed in depth elsewhere).
3.Self-employed (not a Ltd company owner)
You can defer the self-assessment payment due on 31 July 2020 to 31 January 2021. You do not need to tell HMRC you are doing this. You will not incur any interest or penalties if you choose to defer the payment.
You can apply for a grant from the self-employment income support scheme if you’re a self-employed individual or a member of a partnership and you:
• have submitted your Income Tax Self-Assessment tax return for the tax year 2018-19
• traded in the tax year 2019-20
• are trading when you apply, or would be except for COVID-19
• intend to continue to trade in the tax year 2020-21
• have lost trading/partnership trading profits due to COVID-19
Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:
• having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
• having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period
If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.
This scheme is not yet available. HMRC will contact you if you are eligible for the scheme and invite you to apply online.
https://www.gov.uk/guidance/claim-a-...support-scheme
Article on AccountingWeb that gives more clarity on eligbility and how the scheme will work:
https://www.accountingweb.co.uk/tax/...-details-right
You may be able to claim universal credit, if you meet the criteria:
https://www.gov.uk/self-employment-and-universal-credit
Also check the links in section 4 below as some of these measures are also available to the self-employed.
4.Owner of Limited Company
You can defer the self-assessment payment due on 31 July 2020 to 31 January 2021. You do not need to tell HMRC you are doing this. You will not incur any interest or penalties if you choose to defer the payment.
Options available include the below but do check the link at the top for everything that’s available:
• Coronavirus Job Retention Scheme
You may be able to claim the CJRS grant, of 80% of salary up to £2500 per month, if you are operating a PAYE scheme. If you are paying yourself a minimal wage, then the amount you can claim will be very small.
https://www.gov.uk/guidance/claim-fo...tention-scheme
Futher scheme details were published on 13 April. See post #8, below, for the latest information.
• Deferring VAT payments
If you have a payment due between 1 March and 30 June, you can defer it. Make sure your VAT return is submitted on time, as usual. There is no need to tell HMRC you are deferring the payment. Information about how/when to pay the deferred VAT is not yet available.
https://www.gov.uk/guidance/deferral...virus-covid-19
• Business Interruption Loan Scheme
The temporary Coronavirus Business Interruption Loan Scheme supports SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.
The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.
The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank.
There are 40 accredited lenders able to offer the scheme, including all the major banks
https://www.british-business-bank.co...-and-partners/
• Bounce Back Loan Scheme
Launched on 4 May
See separate post below for details
https://www.contractoruk.com/forums/...ml#post2767974
=======
CHANGE LOG
This post will be updated with latest information and validated feedback as it becomes available. Changes will be in blue.
07-APR: Added extra information to sections 1 and 3
13-APR: Link added to updated post #8 with info on CJRS
04-MAY: Added information about the Bounce Back Loan Scheme (BBLS)
Comment