Coronavirus Job Retention Scheme
Boris Johnson has announced an unprecedented package of wage subsidies to help employers keep their employees in work.
He also announced that all bars, pubs, restaurants, gyms and leisure facilities are to close as of Friday 20th March 2020.
This does not include salons, so please note that your salon can still remain open, at least at the moment.
The emergency wage package will help all employees whose wages could be hit by COVID-19, with the government underwriting 80% of salary up to £2,500 a month for employees who are not working.
The new Coronavirus Job Retention Scheme is to help employers retain their employees and to stop laying staff off.
All employees who are on PAYE will be covered by this wage package.
It seems that this only covers those on PAYE so if you are self-employed and not on PAYE at the moment this doesn’t help you.
All employers are eligible for the Coronavirus Job Retention Scheme, and this will be run via HMRC.
More details will follow on this, so we will keep you updated.
It is important to note that this scheme is for employees who are not working but who are kept on your payroll.
The Coronavirus Job Retention Scheme will be covering the cost of wages backdated from 1st March and is open-ended as to how long this will be available for.
The wage packages will be available within the next week and all should be available before the end of April.
Again, we will keep you updated as this unfolds.
Loans and grants
The Coronavirus Interruption Loan scheme (that you can claim via your local bank) will now be Interest free for 12 months with loans available as of Monday 23rd March. More measures for businesses are to follow. We will update you as and when we hear of them.
Further cash flow through the tax system will be available for businesses, deferring the next quarter of VAT, so no VAT will need to be paid from now until the end of June. More clarity will be given on this soon.
Business rates have been abolished this year.
To help out staff that are laid off, Universal and Tax Credits are increasing by £1000 a year.
For those self-employed, the minimum income floor is suspended and they can access in full Universal credit and SSP.
Housing benefit and universal credit will also be used to help renters cover their rent.