Cafés, restaurants, gyms, leisure centres and theatres have been instructed to close tonight. Sad news for businesses but there are things in place to support those in this position.
The Corona Virus Job Retention scheme will cover 80 per cent of the salaries of employees who aren’t working up to £2,500. It means if you can’t afford to pay staff, rather than let them go, you can retain them on the payroll and 80 per cent of their salary will be covered. You can of course top this up. These grants will be delivered via HMRC and will be backdated to 1 March. The first grants will be available within weeks.
Financial Support for Businesses
Many businesses are already struggling so the Corona Virus Interruption Loan will be interest free for 12 months, not six as originally announced. These will be available from Monday.
The next quarter of VAT payments will be deferred meaning the next payment won’t be due to the end of June and the deferred payments won’t be due until the end of the next financial year.
The government is raising the payments for Universal Credit so that the self-employed who get the virus receive the same amount as someone on statutory sick pay (£94.25 a week).
Self-employed people will be able to delay the payment for their self-assessment tax return until January 2021.
Universal credit is being increased by £1,000 a year so self-employed people with little / no work will receive more.
Tax credits will also increase by £1,000 a year.
Housing benefit and so the local housing allowance covers at least 30 per cent of market rents.