Summary of

Coronavirus
Financial
Government
Schemes
 Summary of schemes

1. Business schemes

• Job retention scheme (“furloughing”)

• SSP
• Deferring VAT
• Business rates
• Cash grant
• Interruption loan
• CH Extension
• Insurance

2. Self Employment schemes

• Support schemes
• Universal credit
• Deferring income tax
• Time to Pay offer

3. Individuals & Employees

• Job retention (“furloughing”)
• SSP
• Universal & Working tax credit
• Mortgage payment holiday

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1. Business schemes

Job Retention Scheme

HMRC will support your business by paying 80% of each of your employees’
salary who would have been laid off during the crisis at the maximum of £2,500.
Example?
You have one employee earning £2,000 a month, so you will be able to claim
80% of this which is £1,600. If you have a second employee earning £3,500 per
month then 80% would be £2,800 however this would be capped at £2,500.
When will the scheme start?
The scheme is expected to start from the 1st April 2020 and last for 3 months. You
can backdate claims from the 1st March 2020.
Is my business eligible for this scheme?
All UK businesses regardless of size will be eligible for this scheme.
How do I apply for this scheme?
Firstly, you will need to designate any of your affected employees as furloughed
workers and then you will need to notify your employee of this. Secondly, you will
need to make the claim through HMRC’s portal. We expect the reimbursement
portal to be available from 1st April 2020.

Statutory Sick Pay (SSP)

Statutory sick pay is currently £94.25 per week. If you have had employees on sick
due to COVID-19 then you will be refunded the first 2 weeks of statutory sick pay
paid to your employee.
Is my business eligible for this scheme?
The relief will be available to UK businesses with fewer than 250 employees as at
28th Feb 2020. As an employer, you should maintain records of staff absences
and payments of SSP made.
How do I apply for this scheme?
Currently, the rebate scheme is being developed, further updates will be available
over the coming weeks.

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1. Business schemes continued

Deferring VAT
Any VAT liabilities payment which need to be made between 20th March 2020 until
30th June 2020 will not need to be paid over to HMRC until the 31st March 2021.

How will this help me?

This scheme will help you strengthen your cash flow which is vital during this crisis.
Please note that this is a deferral and not a relief. So eventually, this vat liability will
need to be paid to HMRC.
Will I be charged interest on the outstanding amount?
No penalties or interest for late payment will be charged in the deferral period.
Am I eligible for this deferral?
All UK businesses are eligible for this deferral.
How do I apply for this scheme?
The scheme is automatic, you do not have to apply for this scheme to HMRC.

Business rates
A business rates holiday period will come into effect for the tax year 2020 to 2021 for
those businesses in the retail, hospitality and leisure business.

Is my business eligible for this scheme?

Your business will be eligible if you fall into one of the following categories.
1. Shops
2. Restaurants
3. Café’s
4. Drinking establishments
5. Cinemas
6. Live music venues
7. Properties for assembly and leisure
8. Hotels
9. Guest & boarding premises
10. Self catering accommodation

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1. Business schemes continued

Are nurseries also exempt?

Nurseries will also be exempt from business rates for the new tax year providing your
property is occupied by providers of Ofsted’s Early Years Register or wholly or mainly
used for the provision of the Early Years Foundation Stage.
How do I apply for this scheme?
You do not need to take any action on this. This will automatically apply to your next
council tax bill in April 2020.

Cash Grant
This scheme is a cash grant of £25,000 available to businesses in the retail, hospitality
and leisure sectors who have a rateable value between £15,001 and £51,000.
What if my ratable value is less than £15,001?
If you are within this sector but your rateable value is less than £15,001 a year, then
you will receive a grant of £10,000.
How do I apply for this scheme?
You do not need to do anything to access this grant. Your local authority will write to
you if you are eligible for this grant.

Interruption Loan Scheme

A temporary loan scheme should be available after 23rd March 2020 to support small
and medium sized businesses.

What is the interest rate?

As a business you will be able to access as 12-month interest free loan, as the
government will cover your first 12 months interest. The scheme will support loans
of up to £5 million in value.
Is my business eligible?
You will be eligible if your turnover is no more than £45 million per year and your
business meets the other British Business Bank eligibility criteria.
There are 40 accredited providers of the scheme and all major banks will be offering
the loan once the scheme is launched.
How do I apply for this scheme?
Your next move is to talk to your bank as soon as possible and discuss your business
plan with them.

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1. Business schemes continued

Companies House Extension

The penalty for filing a late set of accounts start at £150 however businesses will be
given an additional 3 months to file their account with Companies House from the
25th March 2020. This extension needs to be applied for online.

Insurance
Businesses that have cover for pandemics and government ordered closure may be
covered. Please speak to your insurance company to discuss your terms and
conditions.

Export Trade
The UK Export Finance (UKEF) provides guarantees, loans and insurance on behalf
of government that can protect UK exporters facing delayed payments or transit
restrictions. The UKEF is able to provide loans to help working capital, export
insurance policy to help recover costs of fulfilling orders and support finance for
your suppliers to that they can continue buying your goods and services.

Annual General Meetings

The government will be introducing legislation to ensure that those companies
required by law to hold AGM’s will be given greater flexibility to holding them
online or even postponing the meetings.

Insolvency Changes
Many UK companies will be undergoing a rescue or restructure process during these
difficult times. The Business Secretary has announced changes to help such
businesses avoid insolvency. The changes help prevent businesses who are unable to
meet their debts due to COVID-19 from being filed for bankruptcy. Further changes
would include enabling companies to continue buying much-needed supplies and
temporarily suspending wrongful trading provisions retrospectively from the 1st
March 2020 for 3 months.
The wrongful trading provisions as introduced into the UK insolvency law in 1986
and makes it an offence for a company director to continue to trade if they know the
company is unable to avoid going into liquidation.
The new measures above give Directors confidence knowing that they can keep
their business going without the threat of personal liability.
As a result, Directors can continue to pay staff and suppliers even if there is fear that
the company could become insolvent.

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2. Self Employment schemes

Self Employed Support Scheme

As a sole trader, HMRC will provide you with a taxable grant equal to 80% of your
average profits for the last 3 tax years at a cap of £2,500 per month.
Am I eligible?
The government have laid out the criterion for eligibility, to simplify this we have
provided you with a table below.

Question Answer

Q1 Did you trade in the 2019/20 tax year? Yes No

Go to Q2 You are not eligible

Q2 Do you intend to continue trading in the Yes No

2020/2021 tax year?
Go to Q3 You are not eligible

Q3 Did you have another source of income other Yes No

than self-employment income during the last 3
tax years? Go to Q4 Go to Q5

Did your self-employment income make up

more than 50% of your total income?

Q4 Did your self-employment income make up Yes No

more than 50% of your total income?
Go to Q5 You are not eligible

Q5 Are your yearly average profits over the last 3 Yes No

years less than £50,000?
You are eligible You are not eligible

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2. Self Employment schemes

How much will I receive?

The chancellor announced that the self-employed will receive 80% of their
average monthly trading profit over the last three years.
Is the grant taxable?
Yes, it is taxable. The earliest time you can receive this grant is in June 2020.
Therefore, this grant falls in the 2020/21 tax year. The 2020/21 tax return would
need to be submitted by the 31st January 2022.
Will this affect by benefits?
The grant is taxable income so yes you will need to include and report this income
when renewing your tax credits.
I have not filed my 2018/19 tax return?
Your 2018/19 self-assessment tax return should have been submitted by the 31st
January 2020. If you would like to qualify for the scheme, you must ensure that
your tax return is submitted by 23rd April 2020.
How do I apply for this scheme?
Individuals do not need to contact HMRC. If you are eligible, HMRC will get in
touch with you once the scheme is operational. Once the scheme is operational
and HMRC have got in contact with you, you will need to make the claim online.
How many months will I be covered for?
You will receive a single lump sum which will cover you for 3 months.
How quickly will I receive the cash?
It is expected that the money will be directly be paid into your account. Payments
are expected to start at the beginning of June 2020.

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2. Self Employment schemes

Universal Credit
As a sole trader, you may be entitled to claim universal credits. The scheme will
calculate a minimum income floor based on number of hours expected to work
and the minimum wage for your age group. This minimum income floor is
basically a figure that the system expects you to earn every month. If you earn
below the income set by the system, your benefits will not be calculated on how
much you earnt but will be calculated on how much the system expected you to
earn every month.

How has the scheme been changed?

A new temporary scheme has been announced by the government to remove the
minimum income floor. Therefore, universal credits will be paid based on your
actual earnings which during these times may be below the minimum income
floor.
Example?
If your minimum income floor is set to £1,000 per month and your earnings were
£600 for the month then your benefits would be based on earnings of £1,000,
even though you earnt £400 less. With the new temporary scheme, your credit
award would be based on your actual earnings of £600 and so this would
increase your universal credit claim.

Time to pay offer

If you already have an outstanding tax liability with HMRC and you have or may
miss your next tax payment due to COVID-19, then please call HMRC on 0800
0159 559. These arrangements are agreed on a case by case basis and are tailored
to individual circumstances and liabilities.

Time to pay offer helpline: 0800 0159 559

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2. Self Employment schemes

Deferring Income Tax

As a sole trader, you need to make a payment on account by the 31st July 2020.
The payment on account will be 50% of your tax liability for the tax year 2018/19.

Example?
Your income tax liability for the tax year 2018/19 was £5,000.
Your first payment will have been due by 31st January 2020 for £7,500 (£5,000 +
£2,500 (50%)). Your second payment for the remainder of the 50% (£2,500)
would be due for the 31st July 2020.

For those of you who need to make a payment on account for the 31st July 2020,
your payment will be deferred until the 31st Jan 2021.

Will I be charged Interest on this deferral?

No penalties or interest for late payment will be charged in the deferral period.

How do I apply for this scheme?

The scheme is automatic, you do not have to apply for this scheme to HMRC

We are holding a Q&A video with Shabbar Jaffer of Jaffer Accountancy to

answer any questions you may have.

Please put your questions into your SF Recruiter or the closest recruiter to you
below;

BIRMINGHAM Bilal Sheik | BSheikh@sfrecruitment.com

LEICESTER Rebecca Parnell | RParnell@sfrecruitment.com
NOTTINGHAM Dominic Syalon | DSyalon@sfrecruitment.com

We will respond with details of when you can see the video and answer to your
question.

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3. Individuals & Employees

Job Retention Scheme

HMRC will be supporting your employer by paying 80% of your wages (maximum of
£2,500 per month) and so the cost to your employer will only be 20% of your total
wage. You will be eligible for this if you are categorised as a ‘furloughed employee’ by
your employer. Our understanding is that your employer must not have laid you of
work in order to apply for this scheme. The scheme is currently available for 3
months starting from 1st April 2020. However, your employer may back date the
claim from the 1st March 2020.

What if I earn more than £2,500?

The reimbursement will be capped at £2,500.
Example?
So, if your total wages are £3,000 per month, HMRC will only contribute
£2,500 and your employer will be expected to cover the remainder £500.

What if I am on a Zero-hour contract?

The chancellor mentioned in his speech that the scheme would cover all individuals
under the PAYE scheme. Therefore, we would expect employees on Zero-hour
contracts to also be protected by the new scheme.
It has been suggested that your February Income will be used to determine your
gross wage.

What if I am an agency worker?

We expect the same rules under zero-hour contract to also apply to agency workers.
However, we will wait for further clarification from HMRC.

Statutory Sick Pay

Statutory sick pay is currently £94.25 per week. Statutory sick pay is normally
available from the 4th day of your illness. However, from the 13th March 2020, if
you have been of sick or have had to self isolate due to Covid-19 then you will be
entitled to SSP from day one.

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3. Individuals & Employees

Do I need to provide a GP fit note for this scheme?

There is no requirement for you to provide a GP fit note however if your employer
requires one then you have been advised to obtain one from the NHS 111 online.

Universal & Working Tax Credit

If you work a certain number of hours and have an income below a certain level,
you could get up to £1,960 a year in working tax credit. This is known as the basic
element.

How has the scheme been changed?

For those on working tax credit, your basic element will be increased by £1,000 for
the next 12 months, making the basic element £2,960. The standard universal
credit allowance will also increase by £1,000 for the next 12 months. How much
you get depends on your earnings and other factors.

Mortgage Payment Holiday

Your mortgage payment may be one of your highest expenses. On the 17th March
2020 it was announced that homeowners including landlords of buy to let
mortgages affected by COVID-19 can apply for a mortgage payment holiday of up
to 3 months.

Will this affect my credit score?

Many banks will have different approaches, speak to your bank to discuss your
concerns.

What about interest payments on the help to buy scheme?

On the 18th March 2020,the government confirmed it would offer interest free
payment holidays to borrowers struggling to pay back their help to buy loans.

How do I apply for this scheme?

Please contact your bank for more details, alternatively you may be able to apply
online to speed up the process. Please note that some lenders may recalculate your
monthly mortgage payments after 3 months and this may result in higher capital &
interest payments.

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3. Individuals & Employees

Other Loans
Many lenders are now revising their terms and conditions on your loans and
credit cards. Get in touch with your lender to see how they can help you.

We are holding a Q&A video with Shabbar Jaffer of Jaffer Accountancy to

answer any questions you may have.

Please put your questions into your SF Recruiter or the closest recruiter to you
below;

BIRMINGHAM Bilal Sheik | BSheikh@sfrecruitment.com

LEICESTER Rebecca Parnell | RParnell@sfrecruitment.com
NOTTINGHAM Dominic Syalon | DSyalon@sfrecruitment.com

We will respond with details of when you can see the video and answer to your
question.

Disclaimer: This document is intended to provide general information only. The article is not
intended as, and should not be taken as, financial, tax, legal, consulting, or any other type of
advice. This document does not establish any contractual or engagement. This information has
been collated by Shabbar Jaffer of Jaffer Accountancy Ltd and has been reproduced by SF
Recruitment with kind thanks to Shabbar Jaffer, March 2020.

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 With huge thanks to Shabbar Jaffer,
Jaffer Accountancy Ltd.

NOTTINGHAM BIRMINGHAM LEICESTER

0115 975 8099 0121 644 4350 0116 281 6670

hello@sfrecruitment.com