Self Employed 80%!
Self-employed individuals are to be paid 80% of trading profits, up to £2,500 a month, to help them cope with coronavirus crisis. This will be based on figures for the last three years TRADING PROFIT up to £50k. It will cover those who earn a MAJORITY of their income from being self employed and they must have filed a 2019 tax return.
It looks as though the function to claim this grant is not going to be up and running until the beginning of June 2020. Meanwhile, the Chancellor is recommending that people apply under the Universal Credit system to get help straight away.
If you haven't filed your tax return for April 2019 then the Chancellor is giving extra time to get your return filed. So if you missed your deadline and still haven't filed you have the chance to catch up and still be eligible for this grant.
What is a 'furloughed' worker?
A furloughed employee is one who has been given a temporary leave of abscence due to the needs of an employer. This means a furloughed worker can return to work in the future and will get paid. The salary payment could be at 80% which the government are covering and it is up to the employer if they wish to cover the 20% to make up the salary.
The scheme is said to be going to run for 3 months from 1st March but they may potentially extend it. The maximum amount of time a worker can be furloughed is one year.
Specific Covid-19 plans..
If an employer cannot cover staff costs due to COVID-19, they may be able to access support to continue paying part of staff wages, to avoid redundancies.
If an employer intends to access the Coronavirus Job Retention Scheme, they will discuss with staff becoming classified as a furloughed worker. This would mean that employees are kept on the payroll, rather than being laid off.
To qualify for this scheme, employees should not undertake work for the employer while they are furloughed. This will allow the employer to claim a grant of up to 80% of wages for all employment costs, up to a cap of £2,500 per month.
As a payroll service provider we will be keeping you up to date with the latest developments and hope to find out exactly how to apply very soon.
Gov.uk Guide on Absence at work
Certifying absence from work
By law, medical evidence is not required for the first 7 days of sickness. After 7 days, employers may use their discretion around the need for medical evidence if an employee is staying at home.
We strongly suggest that employers use their discretion around the need for medical evidence for a period of absence where an employee is advised to stay at home either as they are unwell themselves, or live with someone who is, in accordance with the public health advice issued by the government.
If evidence is required to cover self-isolation or household isolation beyond the first 7 days of absence then employees can get an isolation note from NHS 111 online or from the NHS website.
What to do if an employee needs time off work to look after someone
Employees are entitled to time off work to help someone who depends on them (a ‘dependant’) in an unexpected event or emergency. This would apply to situations related to coronavirus (COVID-19). For example:
Covid-19 Guidance (pt 2)
The Self Employed
Every self-employed person can now access, in full, Universal Credit at a rate equivalent to Statutory Sick Pay for employees
Support for individuals
https://www.understandinguniversalcredit.gov.uk/coronavirus/ or new style Employment and Support Allowance.
Covid-19 Guidance Update (Pt1)
Coronavirus Job Retention Scheme
Coronavirus Business Interruption Loan Scheme
• A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch early next week to support primarily small and medium-sized businesses to access bank lending and overdrafts.
• The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value.
• Businesses can access the first 12 months of that finance interest free, as government will cover the first 12 months of interest payments.
• You are eligible for the scheme if:
Cash grants for retail, hospitality and leisure businesses
Support for businesses that pay little or no business rates
Support for larger firms through the COVID-19 Corporate Financing Facility
Support for businesses paying tax: Time to Pay service
Changes to Statutory Sick Pay
£10k grant for businesses
A grant will be available for those business who are currently eligilble for SBRR - Small Business Rates Releif. We have been advised by Sunderland Council that this will be administered by the Council’s Business Rates team.
Detailed administration procedures are expected to be as follows to ensure that the support goes to the correct organisations:
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Susan Lang - i'm not a budding writer but I will try my best :-)