Government Coronavirus update 20/3/2020 for employees and self employed

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Today’s Government Coronavirus update went even further to assist those worried about their jobs, paying their employees and other bills and paying their personal bills.

Cafes, bars and restaurants have been told to close today and not reopen. They can only stay open for takeaways.

Nightclubs, gyms, theatres and leisure centres and similar businesses have been ordered to close for foreseeable future.

If you are in any doubts at all, you should practise social distancing which means remaining at home as much as possible and if you do have to go out for essential shopping avoid contact with others. Keep children at home and if you do leave for exercise stay at least 2 metres (6 feet) from any one you pass.

Chancellor Rishi Sunak announced another unprecedented economic response which he says it one of the most comprehensive in the world. To all those at home anxious about the days ahead he said you will not face this alone but it will require a collective effort.

To protect peoples jobs, for the first time in British history, the government will step in and help to pay peoples wages. Any employer, small or large will be eligible. Employers can contact HMRC to cover most of the wages of those not working so long as they are kept and retained on payroll. Up to 80% of salary capped at £2,500 per month will be paid. The Coronavirus job retention scheme will be backdated to 1st March and for an initial three months although it may be extended. HMRC are working to get the scheme up and running and aim for the first grants to be paid within weeks and definitely by the end of April.

The Coronavirus interest free loan will now be available starting on Monday and interest free for 12 months, not just 6 months as previously announced.

To help business pay people and keep them in work the next quarter’s VAT can be deferred and businesses will have until the end of June to pay the deferred VAT.

The Universal Credit standard allowance and Working Tax Credits are both extended by £1000 a year. For self employed people Universal Credit can now be accessed in full at the same rate as Statutory Sick Pay.

Additionally for self employed people, the next self assessment payments (due to be paid in July) will be deferred until January 2021. Self employed people will normally be paying ‘on account’ half in January and half in July, with a balancing payment the following January. What this means is that if your earnings go down you won’t be paying tax in advance on earnings you may now not earn. This won’t help if you are unable to work simply because work has disappeared, but this combined with the VAT deferral marks the start of support for self employed people.

19 Responses

  1. As a self employed sole trader, can I employ my wife on a £37500 salary? so the govt pays her £2500 a month?

  2. This is no help at all at the moment . Im a mobile hairdresser and my client list is rapidly drying up . I won’t have any clients in two weeks time . What help can i get from the government then .! ? Will I get my wages paid ,? I don’t think so . Once again the self employed get clobbered again . Oh well it looks like unemployment for me for the foreseeable future .

  3. I’m self employed tipping tax and VAT to the government coffers. What do I get? Offers of a difficult to obtain bank loan and perhaps statutory sick pay for the time I am ill. WOW such generosity knows no bounds. Trodden on again. Enough is enough.

  4. Get real guys
    You could be a ICU
    Or on a ventilator
    We all Just have to
    suck it up and make the best of it

  5. Make no mistake
    life has now changed Every business is going to be different ,many will not survive this

  6. Hi. I m a self employed coach in a smaller sport where it s impossible to earn big money as in some sports…but I love my sport..obviously with schools the Uni and now sports centres closed my work disappeared this weak I believe the govt is doing everything possible…but I only have enough savings to last about 3 weeks. that s without paying my rent…I believe I might get something for rent and living from housing benefit and universal credit from what the Chancellor said yesterday. but having never claimed anything before how and where do we go to claim this please.
    Stay safe everyone

  7. My headstone should read

    RIP Derek Duval 1975 to 2020
    Thrown under the bus by UK Goverment.
    Protect the wealthy. Protect Home owners.
    Protect the old. Protect vunerable
    Self Employed not important

  8. This is discrimination of self employed workers at the highest level. Mr Johnson you have to provide for all.

  9. My wife is a self employed mobile hairdresser; and i have worked all my life from the age of 15yr old i lost my job through dowel cancer and complications i had and received no help from the government this was because myself and wife has followed and done what the government has said over the years ie -work hard – gone without luxuries -save money- get and save for a pension. My wife has been the main earner due to myself not working due to the complications i have had with my cancer , and now my wife has lost all her clients and can’t work and what help will she get in real terms from the government the same help as i got nothing . Come on Boris help the self employed now ‘ and bring us in line with the employed .

  10. Jim you really are a selfish idiot! I’m in hair replacement and I’m doing the right thing however we still have to pay a mortgage, pay bills, feed our children!! We’re losing our clients we’ve built up for many years! I’m certainly not up my own arse I’m scared to death!!!

  11. @Jim the resident Troll
    We’ve heard you talk previously about your cars and rented houses, perhaps some folks can afford to self isolate better than others. Before demonising people like me, best try and walk a mile in my shoes first. Wether it’s putting food on the table for my children by continuing to run our online business with diligence, or self isolating and just fading away,,,,,, I know what my choices are. Enjoy counting your bank balance, I’m sure your afforded shield of steadfast morality will see you through. Prize tool



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