UK Prime Minister, Boris Johnson announced UK lockdown on 23/03/2020, People may only leave home to exercise once a day, travel to and from work when it is "absolutely necessary", shop for essential items and fulfil any medical or care needs. Shops selling non-essential goods have been told to shut and gatherings in public of more than two people who do not live together are prohibited.
All public premises apart from Banks, Supermarkets food delivery and takeaway services, pharmacies, Petrol stations, garages and car rental businesses, Bicycle shops, Home and hardware shops, Launderettes and dry cleaners, Pet shops, Corner shops, newsagents and post offices have been closed throughout the country and the failure in doing so could result in fines.
The Prime Minister took the drastic decision to prevent the NHS being overwhelmed by patients suffering from coronavirus. Dozens of businesses were already closed before the announcement. All events have been cancelled out. The schools were already closed from Friday for an indefinite time period. These strict measures are only to slow down the unnecessary social contact as the number of deaths due to coronavirus is increasing.
The Prime Minister said “The more effectively we follow the advice we are given, the faster this country will stage both a medical and an economic recovery in full”. He also said that the measures would be enforced strictly.
According to the Chancellor, Rishi Sunak these measures will have a significant economic impact.
But it is not all bad news, government has also taken massive steps to help businesses and employees in an attempt prevent economic destabilization
Help for Employees
Prior week, Chancellor Rishi Sunak made an announcement about how government will step in to help to pay people’s wages. He said that the government will cover 80% of the workers salaries for at least the next three months up to a maximum of £2500 a month per employee.
This measure which government has introduced is Coronavirus Job Retention Scheme (CJRS). Employers will be given a grant to cover+the wages of people who are not working but are furloughed and kept on payroll, rather than losing their jobs. The Chancellor said that the measures would apply to all companies large or small. The extension of this scheme is based upon the circumstances and requirements. This scheme would be backdated to 1st of March.
Help for Businesses
The Chancellor has announced to defer VAT payments for businesses until the end of June.
Business rates suspension for a year for retail businesses and pubs, cafes and restaurants
In addition, £330 billion rescue package of loan guarantees has been announced to help U.K. businesses survive. Corona virus Business interruption loans (CBILS) have been introduced providing up to £5 million for SMEs with no interest due for 12 months, larger firms would be able to access a new lending facility to provide low-cost financing. CBILS is available through the British Business Bank’s 40+ accredited lenders, which are listed on the
British Business Bank websiteIn addition small firms in the retail, hospitality and leisure sectors will also be eligible for cash grants of up to £25,000 via a further funding of £20 billion
Help for Self Employed
He said the universal credit standard allowance for the next 12 months would increase by £1,000 a year, with the working tax credit basic element rising by the same amount as well. Sunak added that Britain would also suspend the minimum income floor for self-employed people affected by the economic impact of coronavirus, meaning that they could access universal credit at a rate equivalent to statutory sick pay for workers
Self-Assessment Payments on Accounts due on 31st July have been deferred until 31st Jan 2021
Deferment of VAT payments for businesses until the end of June
The government has also pledged to postpone its
IR35 reforms to April 2021, to help freelancers during the Covid-19 crisis
The government has been massively criticized for not giving sufficient support to the country’s 5 million self-employed freelance workers. An amendment added to the Coronavirus Bill proposes statutory self-employment pay which would cover the lower of £2,917 or 80 per cent of a self-employed person's monthly earnings, averaged over the last three years but this is just a proposal at this stage and has not been approved by the government
Help with Mortgage and Rents
The home owners have been given 3 month’s mortgage holiday and nearly £1 billion of support for renters has also been announced by increasing the generosity of housing benefit and universal credit so that the local housing allowance will cover at least 30% of market rents
If you need advice or assistance with any of above then please feel to
Get in touch with us.
