Coronavirus Job Retention Scheme

Coronavirus Job Retention Scheme

Further to a package of schemes to support business during the coronavirus crisis announced earlier this week, Chancellor Rishi Sunak announced a new job retention scheme yesterday.

This will mean that UK workers of any employer who is placed on the Coronavirus Job Retention Scheme can keep their job, with the government paying up to 80% of a worker’s wages, up to a total of £2,500 per worker each month. These will be backdated to 1st March and will be initially open for 3 months, to be extended if necessary.

In addition to this Sunak announced that:

  • VAT payments due between now and the end of June will be deferred. No VAT registered business will have to make a VAT payment normally due with their VAT return to HMRC in that period. Income tax payments due in July 2020 under the Self Assessment system will be deferred to January 2021, benefitting up to 5.7m self-employed businesses.
  • Additionally, the Coronavirus Business Interruption Loan Scheme, launched at Budget, will now be interest free for twelve months.
  • The standard rate in Universal credit and Tax Credits will be increased by £20 a week for one year from April 6th, meaning claimants will be up to £1,040 better off.
  • Nearly £1bn of additional support for renters, through increases in the level of housing benefit and Universal Credit. From April, Local Housing Allowance rates will pay for at least 30% of market rents in each area.

The HMRC business support helpline is open from

Monday to Friday, 9am – 6pm

0300 456 3565

Please contact us if you would like to discuss any of these matters and for detailed and up to date information please see Gov.uk