Update – 21st March 2020
1.Coronavirus Job Retention Scheme
What is available?
HMRC will reimburse 80% of furloughed workers (people who are still employed but not working) wage costs, up to a cap of £2,500 per month. The purpose is to support businesses to continue paying employees that would otherwise have been laid off.
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.
This is available to ALL UK employers and can be backdated to 1 March.
You are also able to top up their wages if you are willing and able to bear the additional cost.
Who do I ask?
You will need to submit information to HMRC who are in the process of setting up an online portal.
When will it be available?
We do not have a date yet as existing systems are not set up for HMRC to make payments to employers. HMRC are working urgently to set up the system for submission and re-imbursement.
2.Deferring VAT Payments
What is available?
No Vat payments will need to be made which fall due between 20 March 2020 until 30 June 2020. You will be given until the end of the 2020/21 Tax year to make any payments which accumulate during this period.
PLEASE NOTE, THIS IS A DEFERRAL NOT A TAX ‘LET OFF’. IT HAS TO BE PAID BACK EVENTUALLY.
VAT refunds and reclaims will be paid by the government as normal.
This is available to ALL businesses
Who do I ask?
You do not need to ask anyone as this is an automatic offer with no applications required
When will it be available?
This takes effect immediately
3.Deferring Income Tax payments
What is available?
If you have a Self-Assessment payment due on the 31 July 2020 this will be deferred until the 31 January 2021.
No penalties or interest for late payment will be charged in the deferral period.
HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities.
PLEASE NOTE, THIS IS A DEFERRAL NOT A TAX ‘LET OFF’. IT HAS TO BE PAID BACK EVENTUALLY.
Who do I ask?
You do not need to ask anyone regarding the 31 July payment as this is an automatic offer with no applications required.
For time to pay on outstanding liabilities call the dedicated line on 0800 0159 559
When will it be available?
For payments due on 31 July this applies immediately.
For time to pay on outstanding liabilities contact them now on the number above
Government Link https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19
For copies of our previous updates please e-mail either
Previous updates
18 March
19 March
This article is written for the general interest of our clients and is not a substitute for consulting the relevant legislation or taking professional advice. The authors and the firm cannot accept any responsibility for loss arising from any person acting or refraining from acting on the basis of the material included herein.
