Covid-19

New Government Measures 

20/03/2020

Please find below a clarification of the new Coronavirus measures

SSP

SSP cannot be paid to employees and claimed back from the government unless they have been diagnosed as sick with Coronavirus and been told to isolate.  As proof they need to contact NHS 111 online for an Isolation Note.  If they get this note then SSP can be paid from day 1 at a rate of £94.25 per week.  Isolation Notes will be accepted by Job Centre Plus.

If an employee is not eligible for SSP they can make a claim for Universal Credit or Employment & Support Allowance.

SSP can be claimed back by employers for two weeks only.

Coronavirus Job Retention Scheme

80% of employee salaries will be paid by the Government for a period of three months, dated back to 1^st March 2020.   This is capped at £2,500.00 per month per employee.  To qualify employees need to be laid off (Furloughed) and not paid.  They cannot do any work.  Employees need to be informed in writing that they are being Furloughed and taking unpaid leave.

HMRC needs to be notified of the relevant workers and their earnings through an online portal.  This does not exist yet and existing systems are not set up for this.  It is expected that payments to employers will start from the end of April.

It is obvious that Furloughed workers will not receive any money for some time.  The advice is that they can make claims for Universal Credit or Employment Support Allowance.

Coronovirus Business Interruption Loan

Businesses short of funds can apply for a Coronavirus Business Interruption Loan.  This will be set up next week and you will need to access the Business British Bank website.  Loans will be interest free for the first 12 months.

Taxes

VAT payments from the quarter ending March 2020 can be deferred for 3 months.  This tax needs to be paid by the end of the 2020/21 tax year to pay any liabilities incurred during the Deferment Period.

Income Tax payments due on 31^st July 2020 will be deferred unto 31^st January 2021.

Business Rates Grants

Business Rates Grants of between £10,000 and £25,000 will be available This will be organised by the Council and they will contact businesses.  These are expected to be payable sometime in the middle of April.

I will keep you updated.

David Turner – Complete Accounting Services