Coronavirus Update 20 March 2020 – The Economic Package

Chancellor Rishi Sunak announced a sweeping range of measures to be introduced over the coming days, weeks and months. We’ve detailed a summary of the main measures announced below:

• Government to pay 80% of wages for employees temporarily not able to work, up to £2,500 per employee per month. The payment will be in the form of a grant available from HMRC, available by the end of April (backdated to 1 March 2020).
• For the self-employed, a deferral of personal tax payments due on 31 July 2020, payments deferred until 31 January 2021.
• No VAT payable by any business in the quarter to June 2020, with any amount deferred being due by the end of the financial year.
• The government’s Coronavirus Business Interruption Loan Scheme will be interest free for 12 months rather than the initial 6 months, available from Monday (also available to large and medium sized businesses).
• Increase in Universal Credit Standard Allowance of £1,000 for the next 12 months.
• Working tax credit basic element increased by £1,000 for the next 12 months.
• Housing Benefit and Universal Credit to be enhanced so that the local housing allowance will cover 30% of market rents for renters.
• Increase in benefits for self-employed, suspending minimum income floor thereby allowing self-employed access to Universal Credit equivalent to SSP for employees.

To quote the Chancellor, “it’s on all of us” to come together to get through this. EQ will be here to guide you through the new measures announced and advise you throughout this process.

For more information or to discuss how these new measures will impact you and your business, please get in touch with your usual EQ contact or call any of our offices.