This is a developing article that will be updated throughout the day. Last updated 20 March 2020, 5.15pm
On 20 March 2020, the Chancellor, Rishi Sunak announced unprecedented measures to support businesses and their employees.
Jeffreys Henry LLP will provide further details shortly, but in the meantime, the key points of this latest announcement include:-
- Government to help employers pay wages via the COVID-19 Coronavirus Job Retention Scheme. It is understood any business that asks employees to take a temporary leave of absence due to the needs of an employer but kept on the payroll, also known as “furloughed workers”, will be eligible for the scheme. Employers can claim 80% of the salary for up to £2,500 per employee, per month and backdated from 1 March 2020, and open for at least three months. To claim Coronavirus Job Retention Scheme, employers will need to submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal. There may be contractual obligations to this. How to apply for Coronavirus Job Retention Scheme and Furloughed Employees;
- VAT payments for the next quarter will be deferred until the end of the 2020/21 financial year;
- Upcoming self assessment payments deferred to January 2021;
- Restaurants, bars, pubs and a host of other leisure businesses to close from tonight, Friday 20 March 2020, but can offer a takeaway service;
- Moreover, the Chancellor confirmed The COVID-19 Business Interruption Loan Scheme will be available from Monday 23rd March 2020, and interest free extended to 12 months.
Further details to follow…
