Dear All,

I appreciate that you are all worried about the financial impact of COVID-19 and I am trying my hardest to reply to all your emails including out of hours replies.  I have very little information on the schemes offered as HMRC are slow to release this.  But I will summarise what is available;


SELF EMPLOYED

You will receive 80% of your profits which will be pro-rated on the last 3 years tax returns – so that’s 18/19, 17/18 and 17/16.   If you have NOT been self-employed that long they will work on what they have but you must have at least been self-employed during the 18/19 return otherwise you will not qualify (whether this will change I do not know).

This scheme is NOT starting until June and HMRC will contact you, you do not have to apply – I believe it will be an online form but at the moment I do not have access to any further information.

DIRECTORS

As directors you are classed as an employee if you have a contract of employment.

The last paragraph in the self-employed scheme guidance from HMRC stated: “If you’re a director of your own company and paid through PAYE you may be able to get support using the Job Retention Scheme (JRS).”

At the moment the portal to claim is NOT yet open so I am unable to say if there are any exceptions to claiming.

EMPLOYEES – this is taken from the HMRC site

Support for businesses through the Coronavirus Job Retention Scheme

Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis.

This applies to employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as ‘furloughed workers’. HMRC will reimburse 80% of their wages, up to £2,500 per month. This is to safeguard workers from being made redundant.

The Coronavirus Job Retention Scheme will cover the cost of wages backdated to 1 March and is initially open for 3 months, but will be extended if necessary. HMRC will set out more details shortly. Eligibility

All UK businesses are eligible. How to access the scheme

You will need to:

  • designate affected employees as ‘furloughed workers’ and notify your employees of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation
  • submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)

HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.

If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan.

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Refund Policy

For online payments taken via the Invoice Payment page, no refunds can be given as payment is only taken after my service has been provided.

 

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