The chancellor has set out further measure to aid those business affected by Corona Virus including help for the self employed.
Job Retention Scheme & furloughed workers
This scheme is designed to support employers cover wage costs for their employees. All UK businesses are eligible for this scheme.
HMRC will compensate 80% of furloughed workers wage costs up to a limit of £2,500 per month.
The scheme applies to employees employed before 29 February 2020.
In order to be eligible you must notify your furloughed employees that they are not required to work during this time.
The grant and how to apply will be available sometime in April 2020 with funds due by the end of April.
We will be helping all of our employers obtain the grant for their furloughed workers where eligible. Please get in touch with us to find out how we can help.
Deferring VAT and Income Tax payments
VAT Payments for all UK businesses will be pushed back by 3 months (the deferral will apply from March 20th 2020 until June 30th 2020) so no VAT liabilities will need to be paid during this period.
Payments due on the 31st July 2020 for Income Tax Self-Assessment will also be deferred until the 31st January 2021. This only applies to people who are self-employed.
Self Employment Income Support Scheme
Self-employed individuals can apply for this scheme to gain a grant worth 80% of their average monthly profit over the last 3 years – up to a maximum of £2,500 a month. The scheme will be running for at least 3 months and may be extended if necessary.
This scheme is only available to people who earn under £50,000 a year.
The grant will directly be sent to your bank account from HMRC by June.
Also, the grant will be taxable so you will need to declare it on your tax return by January 2022.
Kala Atkinson are committed to helping our clients through these difficult times. IF you are unsure of your eligibility, please get in contact today to find out how we can help.