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Coronavirus Update: Financial Support for Businesses and Workers

20/03/2020

At a glance

The UK government this evening has announced a number of financial packages to support businesses and workers during the coronavirus pandemic, as many businesses across the country are asked to close their doors.

The Future Fund

Key measures include the following:

  • Job retention scheme – Employers can apply for a grant to cover 80% of the salaries of employees retained but not working, with a cap of £2,500 per month, per employee. This will cover all businesses sizes, and include those in non-profit. The scheme is to cover everyone on the PAYE scheme.
  • Backdate wages – The job retention scheme is to cover wages backdated to 1st March and will be open for 3 months. The scheme will be extended longer if necessary, with no limit to funding available. The Chancellor hopes to have the first grants paid within weeks.
  • VAT payments deferred – the next quarter of VAT payments for firms is to be deferred until the end of June, with firms being given until the end of the financial year to repay VAT.
  • Business interruption loans – the loan scheme is to be interest-free for 12 months, extended from the 6 months previously announced, available from Monday.
  • Universal Credit – Universal Credit allowance is to increase by £1,000 a year. The self-employed will receive in full Universal Credit at a rate equivalent to Statutory Sick Pay.

Further details about these measures are expected to be announced in the coming days. If you have any queries, please get in touch with our Employment team.

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