COVID-19: An update for employers and employees

Coronavirus (COVID-19)

helpline

Webchat - Speak to an adviser - for problems paying taxes due to coronavirus (COVID-19), such as:

• self-assessment

New phone number - 0800 024 1222.

Webchat - Speak to an adviser - for problems paying taxes due to coronavirus (COVID-19), such as:

• self-assessment
• VAT
• employers’ PAYE

New phone number - 0800 024

1222.

Webchat - Speak to an adviser - for problems paying taxes due to coronavirus (COVID-19), such as:

• self-assessment;
• VAT
• employers’ PAYE
• corporation tax

New phone number - 0800 024

1222.

Employment income

and

self-employed income

The Coronavirus Job Retention Scheme will reimburse an employer with up to 80% of the pay of an employee who is not working but kept on the payroll (“furloughed”). Up to a maximum of £2,500 per month, plus the associated employer national insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage.

All employers remain liable for associated employer national insurance contributions and minimum automatic enrolment employer pension contributions on behalf of their furloughed employees.

Currently, less than complete clarity in relation to applicability to shareholding directors (“owner managers”).

Through the Self Employment Income Support Scheme (SEISS) the self-employed

(including partners), the majority of whose income is derived from self-employment, can secure a taxable direct grant of 80% of their average profit for the three tax years ending with the 2018/19 tax year or a shorter period (even just the 2018/19 tax year) if three years’ accounts are not available. This is subject to a maximum payment of £2,500 per month.

To qualify, the 2018/19

profit or average profit for up to three years ending with 2018/19 must not exceed £50,000. Grant to run for three months and payment (representing a cumulative three months’ rights) is expected in June. Claimants can continue to work and generate profit. HMRC to invite claims based on records they have.

The Coronavirus Job Retention Scheme will reimburse an employer with up to 80% of the pay of an employee who is not working but kept on the payroll (“furloughed”). Up to a maximum of £2,500 per month, plus the associated employer national insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage.

All employers remain liable for associated employer national insurance contributions and minimum automatic enrolment employer pension contributions on behalf of their furloughed employees.

Currently, less than complete clarity in relation to applicability to shareholding directors (“owner managers”).

For those not entitled to SSP (e.g. the self-employed and gig economy workers), Contributory Employment and Support Allowance (ESA – a basic £73.10 a week for those 25 and over, rising to £74.35 in 2020/21) will be claimable from day one instead of day eight. To ensure that time off work due to sickness is reflected in benefits, the minimum income floor** in Universal Credit (UC) is temporarily removed if an individual gets coronavirus or has to stay at home because of it.

The minimum income floor won’t apply to anyone after 6 April 2020. This will last until the coronavirus outbreak is over. The stated aim is to ensure every self- employed person can now access, in full, UC at a rate equivalent to SSP for employees.

£10,000 grant for all small businesses that qualify for Small Business Rates Relief (SBRR) or Rural Rates Relief. For SBRR, the rateable value of the property used by the business needs to be valued at £15,000 or less.

£25,000 grant for businesses in hospitality, leisure and retail whose rateable value is between

£15,000 - £51,000.

Local Authorities responsible for delivering the funding to eligible businesses. They will then be reimbursed by the Government.

£10,000 grant for all small businesses that qualify for Small Business Rates Relief (SBRR) or Rural Rates Relief. For SBRR, the rateable value of the property used by the business needs to be valued at £15,000 or less.

£25,000 grant for businesses in hospitality, leisure and retail whose rateable value is between

£15,000 - £51,000.

Local Authorities responsible for delivering the funding to eligible businesses. They will then be reimbursed by the Government.

Business interruption loans are available to small and medium businesses from 23/03/2020 for up to £5 million, interest free for 12 months. This scheme will help any viable business with a turnover of up to £45m.

From 23/03/2020, the Bank of England’s Covid Corporate Financing Facility will provide a quick and cost-effective way to raise working capital for those large firms who need it.

Emergency legislation to suspend new evictions from social or private rented accommodation while this national emergency is taking place.

No new possession proceedings through applications to the Court to start during the crisis.

Landlords will also be protected as the three-month mortgage payment holiday is extended to Buy to Let mortgages.

Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction.

No business will be forced out of their premises if they miss a payment in the next three months.

Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction.

No business will be forced out of their premises if they miss a payment in the next three months.

Potential to agree payment of tax (e.g. income tax) in interest free instalments.

Those who cannot pay because of coronavirus should contact the

HMRC Coronavirus Helpline.

Potential to agree payment of tax (e.g. income tax) in interest free instalments.

Those who cannot pay because of coronavirus should contact the HMRC Coronavirus Helpline.

Potential to agree payment of tax (e.g. income tax /corporation tax) in interest free instalments.

Those who cannot pay because of coronavirus (COVID-19) should contact the

HMRC Coronavirus Helpline.