On 20 March 2020 the UK government announced a further package of measures in response to the health crisis. These are in addition to the measures already announced on 17 March.

Coronavirus Job Retention Scheme

Employers will be able to apply to HMRC for a grant covering the wages of people who are not able to come to work but are kept on the payroll rather than being laid off. Any employer including small or large businesses, charities or non-profit organisations is eligible for this scheme.

The grants will amount to 80% of the salary of the retained workers up to a maximum of GBP 2,500 a month.

The grant will cover the cost of wages backdated to 1 March 2020 and is available initially for three months. The scheme will be extended beyond that period if necessary.

Coronavirus Business Interruption Loan Scheme

The Chancellor is extending the Coronavirus Business Interruption Loan Scheme which was already announced earlier. Loans under the scheme will be interest free for twelve months, rather than six months as previously announced. Loans will be available to businesses under this scheme from 23 March 2020.

Further measures are to be announced next week to enable larger and medium sized companies to access credit.

VAT deferral

The next quarter of VAT payments is to be deferred. Businesses will not need to pay any VAT before the end of June, and will be given until the end of the financial year to settle the VAT debt.

Self-employed – tax deferral

The next self-assessment tax payments are to be deferred until January 2021.

Universal credit

The Universal Credit standard allowance is increasing by GBP 1,000 per year for the next twelve months.

Also the Working Tax Credit basic element is increasing by GBP 1,000 for twelve months.

In the case of the self-employed the minimum income floor is suspended for those self-employed people impacted by the economic effects of the coronavirus. This allows all self-employed persons to access Universal Credit at a rate that is equivalent to the Statutory Sick Pay for employees.

Support for rent payments

The housing benefit and Universal Credit are to be extended so that the Local Housing Allowance will cover at least 30% of market rents in each area.

Advertising campaign

A major national advertising campaign is being launched to communicate the support made available to businesses and individuals.