In addition to the help for employers, the government has announced other support measures which may help as follows:
- The previously announced Coronavirus business interruption loan scheme will now have a 12 month interest free period, this was initially only the first 6 months
- Next quarter’s VAT payments can be deferred. This is VAT that would have been due from 20 March to 30 June. All businesses are eligible and will have until 5 April 2021 to make payment of the deferred amounts. There is no need to apply as it is automatic, however repayments will continue to be made as normal.
- Payments on account of self-assessment tax due on 31 July 2020 will be deferred until 31 January 2021, again this is an automatic deferral. No penalties or interest for late payments will be charged in this period.
- Both the universal credit standard allowance and the tax credit basic element will be increased by £1,000 for all claimants.
- The minimum income floor for universal credit will be suspended meaning that self-employed individuals will be able to access universal credit at a rate equivalent to statutory sick pay.
- Support will be given to renters through the benefits system so that they can meet their monthly payments.
Further measures are expected again this week. The best website to get information is https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
As always if you are experiencing financial difficulty due to Coronavirus please do contact us, often seeking advice early can ensure your business will survive these tough economic times.