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Managing your finances during COVID-19

As of 24 March 2020, the Prime Minister Boris Johnson, placed the UK on lockdown for three weeks.

HELP FOR BUSINESSES – PAYROLL / VAT / CASH GRANTS

A package of support has been put together to help businesses in the UK. Full details can be found at: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19

 

EMPLOYERS & EMPLOYEES

For employers, this is a difficult time as they face lay offs and redundancies. The Government wants to keep people in work and to that end, has set up a job retention scheme allowing 80% of salaries to be reimbursed and this will be back dated to 1 March 2020 for up to three months (longer if necessary).

All UK businesses are eligible.

You will need to:
  1. Designate affected employees as ‘furloughed workers,’ and notify your employees of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation
  2. Submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)
  3. HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month and is working urgently to set up a system for reimbursement.

Things to Note:

  • Existing systems are not set up to facilitate payments to employers.
  • Your employee will be kept on your payroll, rather than being laid off. To qualify for this scheme, employees should not undertake work for you while they are furloughed.
  • This will allow you to claim  a grant of up to 80% of an employee’s wage for all employment costs, up to a cap of £2,500 per month.
  • Employees remain employed while furloughed.
  • You can choose to fund the differences between this payment and the salary, but you do not have to.
  • Any persons employed on a salary basis, regular basis, irregular hours or zero hours are all protected. 

SELF EMPLOYED PERSONS

The Governement have annouced a support package. This Scheme will allow all self employed persons to claim a taxable grant of 80% of trading profits up to a maximum of £2,500 per month for the next three months. This may be extended if needed. 
 
 
 

Any queries or concerns?

Please call us on +44 1639 490170 or use our contact form.

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COVID 19 (CORONAVIRUS) – IMPORTANT INFORMATION FOR CLIENTS
Following the recent developments surrounding COVID 19, our top priority remains the health and well-being of our colleagues, whilst ensuring that we are available to continue to deliver a high quality service to all our clients. We have long been a supporter of agile working and have invested heavily in secure, cloud based technology. As a result, we do not expect day-to-day business to be impacted, but have implemented a range of measures to ensure an uninterrupted service.
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