Given that the following points were announced late this afternoon, advice regarding the details of these points will need to be examined further over the coming days. However, the main points announced on 20 March 2020 are:
· Self-employed workers can apply to HMRC for Universal Credit at the same rate as Statutory Sick Pay.
· The deadline for the personal tax payment on account scheduled for 31 July 2020 can be delayed until 31 January 2021 without penalty.
· VAT payments falling due for payment can be delayed until 30 June 2020.
· Universal Credit allowance has been increased by £1,000 a year. We reconfirm that we are not tax credit or benefit advisers.
· HMRC will help to pay employees’ wages so that businesses do not have to lay people off. This is likely to be known as the Coronavirus Job Retention Scheme. A business can apply for a grant of up to£2,500 a month to cover 80% of an employee’s salary for those employees that are not working. This should enable the employees to be retained on the payroll. Applications can be backdated to include employees on the payroll at 28 February 2020 even if they have recently been let go.
· Loans provided through the Coronavirus Business Interruption Loan Scheme will be interest free for twelve months rather than six months as advised previously.
All the best and stay safe.
Duncan & Jo
News, updates and tips – what do the latest accountancy and tax changes mean for you?