Government support for firms – UPDATE
The MoJ has published some interim measures to assist firms with cash flow. These include:
- initiatives to support civil, family, and criminal legal aid practitioners to keep the justice system running
- changes to make hardship payments easier to access – including reducing the threshold for work done to £1,000, rather than the current £5,000
- pausing some debt repayments to the LAA for legal firms
- aligning legal aid fees for First Tier Tribunal immigration and asylum appeals with HMCTS’s move to an online system for these cases
The government has announced a package of support measures for businesses and individuals affected by COVID-19, which includes a Coronavirus Job Retention Scheme.
Any employer with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those who have been asked to stop working, but who are being kept on the payroll, known as ‘furloughed workers’. To safeguard these workers from being made redundant, HMRC will reimburse 80% of their wages, up to £2,500 per month, plus the associated Employer National Insurance contributions and pension contributions (up to the level of the minimum automatic enrolment employer pension contribution) on that subsidised furlough pay.
The scheme will backdate the cost of wages to 1 March. It will be open for four months and extended if necessary. More information can be found on the government’s guidance for employers and businesses update.
The government will also give businesses the option to defer quarterly and monthly VAT payments for the periods ending in February, March and April, as well as payments on account and annual accounting advance payments due between 20 March and 30 June 2020. No application is needed. Businesses will not need to make these VAT payments during this period. HMRC will not charge interest or penalties on any amount deferred. Taxpayers will be given until the end of the 2020/21 tax year to pay any accumulated liabilities.
Other measures include:
- income tax payments due in July 2020 under self-assessment to be deferred to January 2021
- an extension of the interest-free period for Coronavirus Business Interruption Loan Scheme up to 12 months
- the introduction of the Bounce Back Loan Scheme which helps small and medium sized businesses to borrow up to £50,000
- the Coronavirus Large Business Interruption Loan Scheme which supports businesses with an annual turnover of over £45m
- the COVID-19 Corporate Financing Facility under which the Bank of England helps large businesses through purchase of their short-term debt
See more information on the UK Government business support packages
Sick Pay
Sick pay
Hide
Statutory sick pay (SSP) will be available from day one to everyone advised to self-isolate, and those caring for others in self-isolation.
For businesses with fewer than 250 employees, the cost of providing COVID-19 related SSP for up to 14 days will be refunded in full by the government to cover the costs of large-scale sick leave.
Employers should keep records of staff absences and payments of SSP. The government will work with employers over the coming months to set up the repayment mechanism.
For further guidance see:
- UK government – stay at home guidance
- UK government – guidance for employees, employers and businesses
If you’re concerned about the wellbeing of your staff, you can contact your local Public Health England Health Protection Team.