Covid-19 : Business Support 14.05.20 – Update 31
We have updated our UK Business Support summary document (click here) for the recent developments on the Coronavirus business support initiatives, some of which we have circulated via email in recent days. This includes:
- Coronavirus Job Retention Scheme – confirmation that the scheme will continue until the end of October this year, with no changes to the scheme until the end of July. From August the Scheme will be revised to allow furloughed staff to undertake some work. Importantly, the Chancellor indicated that from the start of August, employers will “share with the government the cost of paying salaries”. The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month. Further details will be released at the end of the month.
- Self-Employment Income Support Scheme –the scheme is now open for applications, click here to apply. Once a claim has been submitted, HMRC will advise straight away if the grant is approved and the full three month grant will be paid within 6 working days.
- Credit Insurance Guarantee – support for businesses with supply chains which rely on Trade Credit Insurance in the form of the government temporarily guaranteeing business-to-business transactions currently supported by Trade Credit Insurance, ensuring the majority of insurance coverage will be maintained across the market.
- Temporary VAT zero rating for Personal Protective Equipment (PPE) – the government has announced a change to UK VAT law to introduce a temporary VAT zero rate which comes into effect from 1 May to 31 July 2020.
- Temporary income tax and National Insurance (NIC) exemption where employers reimburse employees’ personal expenditure on home office equipment – which comes into effect for the 2019-20 tax year (from 16 March 2020 only) and 2020-21 tax year.
- R&D Tax Credit – HMRC have switched resources so that they can make tax repayments quickly to help businesses struggling in the face of the Covid-19 crisis.
- Bounce Back Loan Scheme – confirmation the scheme is open for applications and guidance on how to make an application.