CORONAVIRUS (COVID-19) LATEST UPDATES HERE

CORONA VIRUS UPDATES

We know that this is a worrying time for all.

To help you keep updated on any information regarding the Corona Virus pandemic we will be posting information on this page.


For all the latest information direct from the UK Government please visit their website using the following link GOV.UK/coronavirus

LATEST NEWS

May 2020
13 May
Today the Claim a grant through the Self-Employment Income Support Scheme Opens

If you're self-employed or a member of a partnership and have been adversely affected by coronavirus (COVID-19) use this scheme if you're eligible to claim the grant.

Before you start

You should check if you can claim a grant through the Self-Employment Income Support Scheme, and find out when you’ll be able to make a claim.

What you’ll need

You’ll need your:

  • Self Assessment Unique Taxpayer Reference (UTR) - if you do not have this find out how to get your lost UTR
  • National Insurance number - if you do not have this find out how to get your lost National Insurance number
  • Government Gateway user ID and password - if you do not have a user ID, you can create one when you make your claim
  • UK bank details (only provide bank account details where a Bacs payment can be accepted) including:

    • bank account number
    • sort code
    • name on the account
    • your address linked to your bank account

How to claim

You must make the claim yourself. Your tax agent or adviser must not claim on your behalf as this will trigger a fraud alert, and you will have to contact HMRC. This will cause a significant delay to you receiving your payment.

You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.

You should not claim the grant if you’re a limited company or operating a trade through a trust.

Online services may be slow during busy times. Check if there are any problems with this service.

HMRC will check claims and take appropriate action to withhold or recover payments found to be dishonest or inaccurate.

Start now

If you’re unable to claim online you should contact HMRC for help.

After you’ve claimed

We will check your claim and pay your grant into your bank account in the next 6 working days. We will send an email when your payment is on its way.

You can check the status of your payment.

If you think the grant amount is wrong

https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme

April 2020
21 Apr
Find coronavirus financial support for your business

The HMRC has released an updated page for businesses trying to discover what Financial help is available to them.

Coronavirus (COVID-19) support is available to employers and the self-employed. You may be eligible for loans, tax relief and cash grants.

Use this business support finder to see what support is available for you and your business.

https://www.gov.uk/business-coronavirus-support-finder

15 Apr
4th Update To The Claim For Your Employees' Wages Through The Coronavirus Job Retention Scheme

Find out if you’re eligible and how much you can claim to cover wages for employees on temporary leave ('furlough') due to coronavirus (COVID-19).

Contents

  1. Who can claim
  2. Employees you can claim for
  3. Payroll Consolidation
  4. Agreeing to furlough employees
  5. How much you can claim
  6. What you’ll need to make a claim
  7. Claim
  8. After you’ve claimed
  9. When your employees are on furlough

The online service you’ll use to claim is not available yet. We expect it to be available by the end of April 2020.

If you cannot maintain your current workforce because your operations have been severely affected by coronavirus (COVID-19), you can furlough employees and apply for a grant that covers 80% of their usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions (up to the level of the minimum automatic enrolment employer pension contribution) on that subsidised furlough pay.

This is a temporary scheme in place for 3 months starting from 1 March 2020, but it may be extended if necessary and employers can use this scheme anytime during this period. It is designed to help employers whose operations have been severely affected by coronavirus (COVID-19) to retain their employees and protect the UK economy. However, all employers are eligible to claim under the scheme and the government recognises different businesses will face different impacts from coronavirus.

The way to make a claim is online- the service should be simple to use and any support you need available on GOV.UK.

Please use the online support and do not contact HMRC unless it is absolutely necessary - any questions should be directed at your agent, representative or our Web chat service.

Who can claim

You must have:

  • created and started a PAYE payroll scheme on or before 19 March 2020
  • enrolled for PAYE online
  • a UK bank account

Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities.

Apprentices

Apprentices can be furloughed in the same way as other employees and they can continue to train whist furloughed.

However, you must pay your Apprentices at least the Apprenticeship Minimum Wage/National Living Wage/National Minimum Wage (AMW/NLW/NMW) as appropriate for all the time they spend training. This means you must cover any shortfall between the amount you can claim for their wages through this scheme and their appropriate minimum wage.

Guidance is available for changes in apprenticeship learning arrangements because of COVID-19.

Public sector organisations

The government expects that the scheme will not be used by many public sector organisations, as most public sector employees are continuing to provide essential public services or contribute to the response to the coronavirus outbreak.

Where employers receive public funding for staff costs, and that funding is continuing, we expect employers to use that money to continue to pay staff in the usual fashion – and correspondingly not furlough them. This also applies to non-public sector employers who receive public funding for staff costs.

Organisations who are receiving public funding specifically to provide services necessary to respond to COVID-19 are not expected to furlough staff.

In a small number of cases, for example where organisations are not primarily funded by the government and whose staff cannot be redeployed to assist with the coronavirus response, the scheme may be appropriate for some staff.

Individuals

Individuals can furlough employees such as nannies provided they pay them through PAYE, and sent HMRC an RTI submission notifying a payment in respect of the employee on or before 19 March 2020.

Administrators

Where a company is being taken under the management of an administrator, the administrator will be able to access the Job Retention Scheme. However, we would expect an administrator would only access the scheme if there is a reasonable likelihood of rehiring the workers. For instance, this could be as a result of an administration and pursuit of a sale of the business.

Employees you can claim for

You can only claim for furloughed employees that were on your PAYE payroll on or before 19 March 2020 and which were notified to HMRC on an RTI submission on or before 19 March 2020.This means an RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 19 March 2020. Employees that were employed as of 28 February 2020 and on payroll (i.e. notified to HMRC on an RTI submission on or before 28 February) and were made redundant or stopped working for the employer after that and prior to 19 March 2020, can also qualify for the scheme if the employer re-employs them and puts them on furlough.

Employees can be on any type of employment contract, including full-time, part-time, agency, flexible or zero-hour contracts. Foreign nationals are eligible to be furloughed. Grants under the scheme are not counted as ‘access to public funds’, and you can furlough employees on all categories of visa.

To be eligible for the grant, when on furlough, an employee cannot undertake work for, or on behalf, of the organisation or any linked or associated organisation. This includes providing services or generating revenue. Employers are free to consider allocating any critical business tasks to staff that are not furloughed. While on furlough, the employee’s wage will be subject to usual income tax and other deductions.

If you made employees redundant or they stopped working for you after 28 February

If you made employees redundant, or they stopped working for you on or after 28 February 2020, you can re-employ them, put them on furlough and claim for their wages through the scheme. This applies to employees that were made redundant or stopped working for you after 28 February, even if you do not re-employ them until after 19 March. This applies as long as the employee was on your payroll as at 28 February and had been notified to HMRC on an RTI submission on or before 28 February 2020. This means an RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 28 February 2020

If an employee has had multiple employers over the past year, has only worked for one of them at any one time, and is being furloughed by their current employer, their former employer/s should not re-employ them, put them on furlough and claim for their wages through the scheme.

If your employees are working reduced hours

If an employee is working, but on reduced hours, or for reduced pay, they will not be eligible for this scheme.

If your employee is on unpaid leave

If an employee started unpaid leave after 28 February 2020, you can put them on furlough instead. If you put them on furlough then you should pay them at least 80% of their regular wages, up to the monthly cap of £2500.

If an employee went on unpaid leave on or before 28 February, you cannot furlough them until the date on which it was agreed they would return from unpaid leave.

If your employee is self-isolating or on sick leave

If your employee is on sick leave or self-isolating as a result of Coronavirus, they’ll be able to get Statutory Sick Pay, subject to other eligibility conditions applying. The Coronavirus Job Retention Scheme is not intended for short-term absences from work due to sickness, and there is a 3 week minimum furlough period.

Short term illness/ self-isolation should not be a consideration in deciding whether to furlough an employee. If, however, employers want to furlough employees for business reasons and they are currently off sick, they are eligible to do so, as with other employees. In these cases, the employee should no longer receive sick pay and would be classified as a furloughed employee.

Employers are also entitled to furlough employees who are being shielded or off on long-term sick leave. It is up to employers to decide whether to furlough these employees. You can claim back from both the Coronavirus Job Retention Scheme and the SSP rebate scheme for the same employee but not for the same period of time. When an employee is on furlough, you can only reclaim expenditure through the Coronavirus Job Retention Scheme, and not the SSP rebate scheme. If a non-furloughed employee becomes ill, needs to self-isolate or be shielded, then you might qualify for the SSP rebate scheme, enabling you to claim up to two weeks of SSP per employee.

If your employee becomes sick while furloughed

Furloughed employee retain their statutory rights, including their right to Statutory Sick Pay. This means that furloughed employees who become ill must be paid at least Statutory Sick Pay. It is up to employers to decide whether to move these employees onto Statutory Sick Pay or to keep them on furlough, at their furloughed rate.

If a furloughed employee who becomes sick is moved onto SSP, employers can no longer claim for the furloughed salary. Employers are required to pay SSP themselves, although may qualify for a rebate for up to 2 weeks of SSP. If employers keep the sick furloughed employee on the furloughed rate, they remain eligible to claim for these costs through the furloughed scheme.

Shielding Employees

Employees who are unable to work because they are shielding in line with public health guidance (or need to stay home with someone who is shielding) can be furloughed.

Employees with caring responsibilities

Employees who are unable to work because they have caring responsibilities resulting from coronavirus (COVID-19) can be furloughed. For example, employees that need to look after children can be furloughed.

If your employee has more than one job

If your employee has more than one employer they can be furloughed for each job. Each job is separate, and the cap applies to each employer individually.

Employees can be furloughed in one job and receive a furloughed payment but continue working for another employer and receive their normal wages.

If your employee is on a fixed term contract

Employees on fixed term contracts can be furloughed. Their contracts can be renewed or extended during the furlough period without breaking the terms of the scheme. Where a fixed term employee’s contract ends because it is not extended or renewed you will no longer be able claim grant for them.

Eligible individuals who are not employees

As well as employees, the grant can be claimed for any of the following groups, if they are paid via PAYE: office holders (including company directors), salaried members of Limited Liability Partnerships (LLPs), agency workers (including those employed by umbrella companies), and limb (b) workers.

The guidance below sets out specific considerations for those individuals who are paid via PAYE, but who are not necessarily employees in employment law. Unless explicitly set out below, all other guidance is applicable to these cases, and should be followed.

Office Holders

Office holders can be furloughed and receive support through this scheme. The furlough, and any ongoing payment during furlough, will need to be agreed between the office holder and the party who operates PAYE on the income they receive for holding their office. Where the office holder is a company director or member of a Limited Liability Partnership (LLP), the furlough arrangements should be adopted formally as a decision of the company or LLP.

Company Directors

As office holders, salaried company directors are eligible to be furloughed and receive support through this scheme. Company directors owe duties to their company which are set out in the Companies Act 2006. Where a company (acting through its board of directors) considers that it is in compliance with the statutory duties of one or more of its individual salaried directors, the board can decide that such directors should be furloughed. Where one or more individual directors’ furlough is so decided by the board, this should be formally adopted as a decision of the company, noted in the company records and communicated in writing to the director(s) concerned.

Where furloughed directors need to carry out particular duties to fulfil the statutory obligations they owe to their company, they may do so provided they do no more than would reasonably be judged necessary for that purpose, i.e. they should not do work of a kind they would carry out in normal circumstances to generate commercial revenue or provides services to or on behalf of their company.

This also applies to salaried individuals who are directors of their own personal service company (PSC).

Salaried Members of Limited Liability Partnerships (LLPs)

Members of LLPs who are designated as employees for tax purposes (‘salaried members’) under the Income Tax (Trading and Other Income) Act (ITTOIA) 2005 are eligible to be furloughed and receive support through this scheme.

The rights and duties of a member of an LLP are set out in an LLP agreement and in the absence of an agreement, default provisions in the LLP Act 2000, based upon company and partnership law. Such an agreement may include separate agreement between the LLP and an individual member setting out the terms applicable to that member’s relationship with the LLP.

To furlough a member, the terms of the LLP agreement (or any such agreement between the LLP and the member) may need to be varied by a formal decision of the LLP, for example to reflect the fact that the member will perform no work in the LLP for the period of furlough, and the effect of this on their remuneration from the LLP. For an LLP member who is treated as being employed by the LLP (in accordance with s863A of ITTOIA 2005), the reference salary for this scheme is the LLP member’s profit allocation, excluding any amounts which are determined by the LLP member’s performance, or the overall performance of the LLP.

Agency Workers (including those employed by umbrella companies)

Where agency workers are paid through PAYE, they are eligible to be furloughed and receive support through this scheme, including where they are employed by umbrella companies.

Furlough should be agreed between the agency, as the deemed employer, and the worker, though it would be advised to discuss the need to furlough with any end clients involved. As with employees, agency workers should perform no work for, through or on behalf of the agency that has furloughed them while they are furloughed, including for the agency’s clients.

Where an agency supplies clients with workers who are employed by an umbrella company that operates the PAYE, it will be for the umbrella company and the worker to agree whether to furlough the worker or not.

Limb (b) Workers

Where Limb (b) Workers are paid through PAYE, they can be furloughed and receive support through this scheme.

Those who pay tax on their trading profits through Income Tax Self-Assessment, may instead be eligible for the Self-Employed Income Support Scheme (SEISS), announced by the Chancellor on 26 March 2020.

Read more information on the Self-Employed Income Support Scheme, including eligibility criteria and how to claim.

Contingent workers in the public sector

The Cabinet Office has issued guidance on how payments to suppliers of contingent workers impacted by COVID-19 should be dealt with where the party receiving the contingent worker’s services is a Central Government Department, an Executive Agency of a Central Government Department or a Non-Departmental Public Body.

Read more information on contingent workers impacted by COVID-19. This guidance applies to agency workers paid through PAYE, as well as those paid through umbrella companies on PAYE and off-payroll workers supplying their services through a Personal Service Company (PSC).

Contractors with public sector engagements in scope of IR35 off-payroll working rules (IR35)

Public sector bodies will follow the Crown Commercial Services guidance in the vast majority of cases. In a small number of cases, for example where organisations are not primarily funded by the government and whose staff cannot be redeployed to assist with the coronavirus response, it may be appropriate to claim under the CJRS. Contractors who are deemed employees according to the off-payroll working rules might be eligible for this scheme.

In this scenario, if the public sector organisation wished to furlough a contractor, they would have to confirm this with both the contractor’s Personal Service Company (PSC) and the fee-payer (as set out in the off-payroll working rules, usually the agency paying the contractor’s PSC). It should be formally agreed between these parties that the contractor is to do no work for the public sector organisation during their period of furlough. The fee-payer would be able to apply for the furlough payment of 80% of the monthly contract value, up to a maximum of £2,500, as well as the employer NICs on that subsidised wage. The fee-payer would then pay at least the amount of wage-grant received to the PSC, and report the payment via PAYE using the contractor’s details, making the usual tax and National Insurance contributions (NICs) deductions for contracts in scope of the off-payroll rules. The PSC would then be required to report the amount it pays to the contractor as deemed employment income via PAYE using box 58A on the PAYE Real Time Information return.

Where a contractor is continuing to receive payments from a public sector client (including through the CJRS or other any other scheme), income from this client should be excluded from any calculation of the reference pay for the purposes of the CJRS if the contractor also decides to furlough themselves as an employee or director of their own company.

Employee transfers under TUPE and on a change in ownership

A new employer is eligible to claim under the CJRS in respect of the employees of a previous business transferred after 19 March 2020 if either the TUPE or PAYE business succession rules apply to the change in ownership.

Read more guidance on TUPE rules.

Read more guidance on business succession.

Payroll Consolidation

Where a group of companies have multiple PAYE schemes and there is a transfer of all employees from these schemes into a new consolidated PAYE scheme after 19 March 2020, the new scheme will be eligible to furlough those employees and claim the grants available under the CJRS.

If your employee does volunteer work

A furloughed employee can take part in volunteer work, if it does not provide services to or generate revenue for, or on behalf of your organisation or a linked or associated organisation. Your organisation can agree to find furloughed employees new work or volunteering opportunities whilst on furlough if this is in line with public health guidance.

If your employee undertakes training

Furloughed employees can engage in training, as long as in undertaking the training the employee does not provide services to, or generate revenue for, or on behalf of their organisation or a linked or associated organisation. Furloughed employees should be encouraged to undertake training.

Where training is undertaken by furloughed employees, at the request of their employer, they are entitled to be paid at least their appropriate national minimum wage for this time. In most cases, the furlough payment of 80% of an employee’s regular wage, up to the value of £2,500, will provide sufficient monies to cover these training hours. However, where the time spent training attracts a minimum wage entitlement in excess of the furlough payment, employers will need to pay the additional wages (see National Minimum Wage Section for more details).

If your employee is on maternity leave, adoption leave, paternity leave or shared parental leave

The normal rules for maternity and other forms of parental leave and pay apply.

You can claim through the scheme for enhanced (earnings related) contractual pay for employees who qualify for either:

  • maternity pay
  • adoption pay
  • paternity pay
  • shared parental pay

Agreeing to furlough employees

Employers should discuss with their staff and make any changes to the employment contract by agreement. When employers are making decisions in relation to the process, including deciding who to offer furlough to, equality and discrimination laws will apply in the usual way.

To be eligible for the grant employers must confirm in writing to their employee confirming that they have been furloughed. A record of this communication must be kept for five years.

You do not need to place all your employees on furlough. However, those employees who you do place on furlough cannot undertake work for you.

How much you can claim

You’ll need to claim for:

  • 80% of your employees’ wages (even for employee’s on National Minimum Wage) - up to a maximum of £2,500 per month. Do not claim for the worker’s previous salary.
  • Employer National Insurance contributions that are paid on the subsidised furlough pay.

Employer pension contributions that are paid on the subsidised furlough pay, up to the level of the minimum automatic enrolment employer contribution.The maximum level of grant for employer pension contributions on subsidised furlough pay is set in line with the minimum automatic enrolment employer contribution of 3% on qualifying earnings. Grants for pension contributions can be claimed up to this cap provided the employer will pay the whole amount claimed to a pension scheme for the employee as an employer contribution.

You can choose to top up your employee’s salary, but you do not have to. Employees must not work or provide any services for the business while furloughed, even if they receive a top-up salary.

Grants will be prorated if your employee is only furloughed for part of a pay period.

Claims should be started from the date that the employee finishes work and starts furlough, not when the decision is made, or when they written to confirming their furloughed status.

The way you work out your employees’ wages is different depending on what type of contract they’re on, and when they started work.

Full or part time employees on a salary

Claim for the 80% of the employee’s salary, as in their last pay period prior to 19 March 2020.

If, based on previous guidance, you have calculated your claim based on the employee’s salary as at 28 February 2020 (and this differs from their salary in their last pay period prior to 19 March 2020) you can choose to still use this calculation for your first claim.

Employees whose pay varies

If the employee has been employed for 12 months or more, you can claim the highest of either the:

  • same month’s earning from the previous year
  • average monthly earnings for the 2019-2020 tax year

If the employee has been employed for less than 12 months, claim for 80% of their average monthly earnings since they started work until the date they are furloughed.

If they have been employed for less than a month, work out a pro rata for their earnings so far, and claim for 80%.

Past Overtime, Fees, Commission, Bonuses and non-cash payments

You can claim for any regular payments you are obliged to pay your employees. This includes wages, past overtime, fees and compulsory commission payments. However, discretionary bonus (including tips) and commission payments and non-cash payments should be excluded.

Benefits in Kind and Salary Sacrifice Schemes

The reference salary should not include the cost of non-monetary benefits provided to employees, including taxable Benefits in Kind. Similarly, benefits provided through salary sacrifice schemes (including pension contributions) that reduce an employee’s taxable pay should also not be included in the reference salary.
All the grant received to cover an employee’s subsidised furlough pay must be paid to them in the form of money. No part of the grant should be netted off to pay for the provision of benefits or a salary sacrifice scheme.

Where the employer provides benefits to furloughed employees, including through a salary sacrifice scheme, these benefits should be in addition to the wages that must be paid under the terms of the Job Retention Scheme.

Normally, an employee cannot switch freely out of a salary sacrifice scheme unless there is a life event. HMRC agrees that COVID-19 counts as a life event that could warrant changes to salary sacrifice arrangements, if the relevant employment contract is updated accordingly.

Employer National Insurance and Pension Contributions

You’ll still need to pay employer National Insurance and pension contributions on behalf of your furloughed employees, and you can claim for these too.

You cannot claim for:

  • additional National Insurance or pension contributions you make because you chose to top up your employee’s salary
  • any pension contributions you make that are above the mandatory employer contribution

Apprenticeship Levy and Student Loans

Both the Apprenticeship Levy and Student Loans should continue to be paid as usual. Grants from the Job Retention Scheme do not cover these.

National Minimum Wage

Individuals are only entitled to the National Living Wage (NLW)/National Minimum Wage (NMW)/ Apprentices Minimum Wage (AMW) for the hours they are working or treated as working under minimum wage rules. This means that furloughed workers who are not working can be paid the lower of 80% of their salary or £2,500 even if, based on their usual working hours, this would be below their appropriate minimum wage. However, time spent training is treated as working time for the purposes of the minimum wage calculations and must be paid at the appropriate minimum wage, taking into account the increase in minimum wage rates from 1 April 2020. As such, employers will need to ensure that the furlough payment provides sufficient monies to cover these training hours. Where the furlough payment is less than the appropriate minimum wage entitlement for the training hours, the employer will need to pay the additional wages to ensure at least the appropriate minimum wage is paid for 100% of the training time.

Where a furloughed worker is paid close to minimum wage levels and asked to complete training courses for a substantial majority of their usual working time, employers are recommended to seek independent advice or contact Acas.

Returning from statutory leave

Statutory leave includes maternity leave, paternity leave, shared parental leave, adoption leave, sick leave and parental bereavement leave.

In line with other employees, claims for full or part time employees furloughed on return from statutory leave should be calculated against their salary, before tax, not the pay they received whilst on statutory leave.

Claims for those on variable pay, returning from statutory leave should be calculated using either the:

  • same month’s earning from the previous year
  • average monthly earnings for the 2019-2020 tax year.

What you’ll need to make a claim

Employers should discuss with their staff and make any changes to the employment contract by agreement. Employers may need to seek legal advice on the process. If sufficient numbers of staff are involved, it may be necessary to engage collective consultation processes to procure agreement to changes to terms of employment.

To claim, you will need:

  • your employer PAYE reference number
  • the number of employees being furloughed
  • National Insurance Numbers for the furloughed employees
  • Names of the furloughed employees
  • Payroll/employee number for the furloughed employees (optional)
  • your Self Assessment Unique Taxpayer Reference or Corporation Tax Unique Taxpayer Reference or Company Registration Number
  • the claim period (start and end date)
  • amount claimed (per the minimum length of furloughing of 3 consecutive weeks)
  • your bank account number and sort code
  • your contact name
  • your phone number

You will need to calculate the amount you are claiming. HMRC will retain the right to retrospectively audit all aspects of your claim.

If you have fewer than 100 furloughed staff you will be asked to enter details of each employee you are claiming for directly into the system - this will include their name, National Insurance number, claim period and claim amount, and payroll/employee number (optional).

If you have 100 or more furloughed staff you will be asked to upload a file with the information rather than input it directly into the system. We will accept the following file types: .xls .xlsx .csv .ods

The file should include the following information for each furloughed employee: name, National Insurance number, claim period and claim amount, payroll/employee number (optional).

You should retain all records and calculations in respect of your claims.

HMRC cannot provide your employees with details of claims you make on their behalf. Please help us by keeping your employees informed, answering any questions that they might have. Please ask them not to contact HMRC.

If you use an agent who is authorised to act for you for PAYE purposes, they will be able to make a claim on your behalf. If you use a file only agent (who files your RTI return but doesn’t act for you on any other matters) they won’t be authorised to make a claim for you and you will need to make the claim yourself. Your file only agent can assist you in obtaining the information you need to claim (which is listed above). We are making the claim process as straightforward as possible.

If an agent makes a claim on your behalf you will need to tell them which bank account you would like the grant to be paid into.

Claim

You should make your claim using the amounts in your payroll - either shortly before or during running payroll. Claims can be backdated until the 1 March where employees have already been furloughed.

If appropriate, worker’s wages should be reduced to 80% of their salary within your payroll before they are paid. This adjustment will not be made by HMRC.

Minimum furlough periods

Any employees you place on furlough must be furloughed for a minimum period of 3 consecutive weeks. When they return to work, they must be taken off furlough. Employees can be furloughed multiple times, but each separate instance must be for a minimum period of 3 consecutive weeks.

After you’ve claimed

HMRC will check your claim, and if you’re eligible, pay it to you by BACS to a UK bank account.

You must pay the employee all the grant you receive for their gross pay in the form of money.

Furloughed staff must receive no less than 80% of their reference pay (up to the monthly cap of £2500).

Employers cannot enter into any transaction with the worker which reduces the wages below this amount. This includes any administration charge, fees or other costs in connection with the employment.

When the government ends the scheme

When the government ends the scheme, you must make a decision, depending on your circumstances, as to whether employees can return to their duties. If not, it may be necessary to consider termination of employment (redundancy).

HMRC will process all claims made before the scheme ends.

When your employees are on furlough

You cannot ask your employee to do any work that:

  • makes money for your organisation or any organisation linked or associated with your organisation
  • provides services for your organisation or any organisation linked or associated with your organsation

They can take part in volunteer work or training.

Employee taxes

Your employees will still pay the taxes they normally pay out of their wages.

This includes pension contributions (both employer contributions and automatic contributions from the employee), unless the employee has opted out or stopped saving into their pension.

Employee rights

Employees still have the same rights at work, including:

  • Statutory Sick Pay
  • maternity and other parental rights
  • rights against unfair dismissal
  • redundancy payments

Grants cannot be used to substitute redundancy payments. HMRC will continue to monitor businesses after the scheme has closed.

Working for a different employer

If contractually allowed, your employees are permitted to work for another employer whilst you have placed them on furlough.

For any employer that takes on a new employee, the new employer should ensure they complete the starter checklist form correctly. If the employee is furloughed from another employment, they should complete Statement C.

Tax Treatment of the Coronavirus Job Retention Grant

Payments received by a business under the scheme are made to offset these deductible revenue costs. They must therefore be included as income in the business’s calculation of its taxable profits for Income Tax and Corporation Tax purposes, in accordance with normal principles.

Businesses can deduct employment costs as normal when calculating taxable profits for Income Tax and Corporation Tax purposes.

Individuals with employees that are not employed as part of a business (such as nannies or other domestic staff) are not taxable on grants received under the scheme. Domestic staff are subject to Income Tax and National Insurance Contributions on their wages as normal.

14 Apr
Claim a grant through the coronavirus (COVID-19) Self-employment Income Support Scheme

Update to the scheme if you're self-employed or a member of a partnership in the UK and have lost income due to coronavirus (COVID-19).

Contents

  1. Who can claim
  2. How much you’ll get
  3. How to claim
  4. After you’ve claimed
  5. Other help you can get

HOWEVER........ The online service you’ll use to claim is not available yet. HMRC will aim to contact you by mid May 2020, and will make payments by early June 2020.

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

March 2020
30 Mar
DAILY CORONAVIRUS CASES FALL 10 PER CENT

Daily coronavirus cases have dropped for the first time in weeks, according to the latest figures.

Stocks rallied as the number of daily coronavirus cases fell 10 per cent on Sunday compared to the previous day. 

However, the gains were not sustained and the FTSE 100 is down 0.87 per cent this morning. 

The drop in new cases could spark hope that the pandemic has peaked, however one day’s figures are not sufficient to deduce whether lockdown measures across the world have been successful in bringing the virus under control. 

The number of people diagnosed with coronavirus was 59.232 on Sunday, and the total number of cases has reached 723,362, the Financial Times reported.

In the UK the number of confirmed cases stands at 19,522, with 2,433 new cases confirmed yesterday. The death toll has reached 1,228. 

This morning it was reported that coronavirus is showing early signs of slowing in the UK. Professor Neil Ferguson told the Guardian that data showed social distancing measures were beginning to work.

However, yesterday it was announced that the UK’s lockdown measures, announced on Monday, could last longer than six months. 

Deputy chief medical officer Jenny Harries said the measures will be reviewed every three weeks, but the UK will likely not get back to normal within six months. 

“So I think three weeks for review, two or three months to see whether we’ve really squashed [the curve of the spread of Covid-19],” she said.

“It is plausible that it could go further than that.”

Meanwhile, Ferguson, an epidemiology adviser, yesterday said that it was “optimistic” that the lockdown measures would be eased off by May.

26 Mar
Claim a grant through the coronavirus (COVID-19) Self-employment Income Support Scheme

Claim a grant through the coronavirus (COVID-19) Self-employment Income Support Scheme

Use this scheme if you're self-employed or a member of a partnership and have lost income due to coronavirus.

Published 26 March 2020

From:

HM Revenue & Customs

Contents

  1. Who can apply
  2. How much you’ll get
  3. How to apply
  4. After you’ve applied
  5. Other help you can get

This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.

Who can apply

You can apply if you’re a self-employed individual or a member of a partnership and you:

  • have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
  • traded in the tax year 2019-20
  • are trading when you apply, or would be except for COVID-19
  • intend to continue to trade in the tax year 2020-21
  • have lost trading/partnership trading profits due to COVID-19

Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:

  • having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
  • having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period

If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020.

HMRC will use data on 2018-19 returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way.

How much you’ll get

You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable):

  • 2016 to 2017
  • 2017 to 2018
  • 2018 to 2019

To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount.

It will be up to a maximum of £2,500 per month for 3 months.

We’ll pay the grant directly into your bank account, in one instalment.

How to apply

You cannot apply for this scheme yet.

HMRC will contact you if you are eligible for the scheme and invite you to apply online.

Individuals do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.

You will access this scheme only through GOV.UK. If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam.

After you’ve applied

Once HMRC has received your claim and you are eligible for the grant, we will contact you to tell you how much you will get and the payment details.

If you claim tax credits you’ll need to include the grant in your claim as income.

Other help you can get

The government is also providing the following additional help for the self-employed:

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.

Published 26 March 2020

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

26 Mar
Health chief's demand as coronavirus measures for self-employed announced

Tax reforms have already made 12,000 doctors leave the UK, says Secretary General of the Independent Health Professionals’ Association

The Secretary General of an association that represents thousands of health care professionals has demanded equal rights for equal tax, in response to Chancellor Rishi Sunak's announcement of emergency measures to help the self-employed during the COVID-19 coronavirus pandemic.

Unveiling a new income support scheme that will pay self employed workers a grant of up to £2,500 a month, worth 80% of their average monthly profits over the last three years, the Chancellor hinted the trade-off for this will be the self-employed and the employed paying the same tax and National Insurance rates in the future.

"If we all want to benefit equally from state support, we must all pay in equally in the future," said Mr Sunak.

However, Dr Iain Campbell, Secretary General of the Independent Health Professionals’ Association (IHPA), says that existing tax reforms for the self-employed have already likely caused a 12,000 reduction in the number of doctors in this country.

Her Majesty’s Treasury, speaking on behalf of the HM Revenue and Customs (HMRC) has previously said it has seen no evidence of NHS staff shortages as a result of the IR35 tax changes, that see self-employed contractors classed as ‘disguised employees’.

This means self-employed doctors and nurses can no longer claim back legitimate costs such as temporary accommodation and transport as business expenses, but instead must foot them personally.

Unlike employed workers, self employed do not receive holiday pay or sick pay.

Now, as he announced new measures to support the self-employed through the pandemic, Mr Sunak said he would look to address what he called an inconsistency in self-employed contributions in the future when working to “right the ship” after the crisis.

He said: “Rather than be too specific right now about future tax policy, it’s just an observation that there’s currently an inconsistency in contributions between self-employed and employed.

“And the actions taken today, which is very significant, tens of billions of pounds of support for those who are self-employed treating them the same way as those who are employed, it does throw into light the question of consistency and whether that is fair to everybody going forward.

“Especially as when we get through this and are chipping in together to right the ship afterwards making sure everyone is doing their bit as well.

“And I think that is a very fair and reasonable observation to make at this time.”

However, in response, Dr Campbell demanded 'equal rights for equal tax' for self-employed workers, who do not receive holiday pay or sick pay, and are often disadvantaged in other ways.

He told us: "The mantra should not be same role, same tax - it should be same tax, same rights."

Dr Campbell has previously called for the suspension of IR35 tax legislation, that has seen self-employed contractors classed as ‘disguised employees’, which means they can no longer claim back legitimate costs such as temporary accommodation and transport as business expenses but instead must foot them personally.

He says this has likely caused a 12,000 reduction in the number of doctors in this country, and that he believes the stress and anxiety it can trigger is harming the mental health of some medics – including a surgeon who he said has twice tried to take his own life.

Other critics say the legislation has forced many thousands of workers to leave other areas of the contracting sector.

Earlier this month, the Chief Secretary to the Treasury Steve Barclay announced that the planned roll-out of the latest IR35 reforms, that will see responsibility for IR35 assessment transferred from contractors to large and medium companies, would be pushed back by one year - less than a week after the April roll-out was confirmed in the Budget.

However, Dr Campbell says the roll out has only been suspended in the private sector, so health care professionals working in the public sector - such as the NHS are still - will continue to struggle due the Off Payroll rues.

"The NHS is still at big risk and there will be preventable loss of life if the reforms are not suspended," claimed Dr Campbell. 

Last year, Dr Iain Campbell told us that IR35 legislation that is already in place, and a controversial tax policy called the Loan Charge that targets people who used tax management schemes, that has been linked with multiple suicides, were creating a staffing and mental health crisis in the NHS

A spokesman for HM Treasury, speaking on behalf of the HMRC said that “no-one has to use a disguised remuneration or other avoidance scheme”.

However, in written evidence given to the House of Lords and published on the Parliament website, Dr Campbell said IR35 legislation, designed to clamp down on what the HMRC calls ‘disguised employees’, had wrongly taken away self-employed status from tens of thousands of doctors and nurses, many of whom provide temporary and emergency cover for the NHS.

This means they can no longer claim back legitimate costs such as temporary accommodation and transport as business expenses but instead must foot them personally.

Accusing HMRC of “deliberate misrepresentation”, he told the House of Lords: “We [IHPA] hold evidence obtained by FOI [Freedom of Information request] which shows the claims HMRC made to your lordships with respect to not foreseeing any great impact on the NHS are demonstrably incorrect.”

Original source Plymouth Live

26 Mar
CITB suspends levy payments

The CITB has suspended the issue of its levy bills, due for payment in 2020, for an initial period of three months. The bills will subsequently be issued for the full year.

The delay will provide immediate financial relief to construction employers during the coronavirus crisis, the CITB said

In normal times CITB assesses and sends out levy bills each April in accordance with legal requirements. CITB levy bills are usually due for payment in May, but CITB will not seek collection on the suspended bills until August, or later if possible.

Sarah Beale, CITB Chief Executive, said: “Everyone in construction is facing extreme pressure at the moment and it’s right that we provide financial relief where we can to protect employers and ensure that the industry is as prepared as possible for the economic recovery that will come when the crisis lifts.

“CITB is reviewing all of its work to respond to the changing skills needs of industry. We are continuing to re-evaluate our services, funding and grants to adapt them to meet industry’s changing priority needs.”

All levy bills, raised before 2020, should have been paid by this point. Employers in arrears should contact CITB to discuss payment options.

26 Mar
Deferral of VAT payments as a result of COVID-19

The Chancellor announced a VAT payments deferral on 20 March to support businesses with cash flow during the COVID-19 pandemic.

This means that all businesses with a UK VAT registration have the option to defer VAT payments due between 20 March and 3‌0‌‌ June.

You therefore have until 3‌1‌‌ March 2021 to pay any VAT deferred as a result of this announcement.

You do not need to inform HMRC if you wish to defer payment. You can opt in to the deferral simply by not making VAT payments due in this period. If you pay by Direct Debit you should cancel this with your bank. You should do so in sufficient time so that HMRC does not attempt to automatically collect on receipt of their VAT return.

Should you wish, you can continue to make payments as normal during the deferral period. HMRC will also continue to pay repayment claims as normal.

You must continue to submit VAT returns as normal.

26 Mar
Coronavirus: Rishi Sunak to unveil financial aid for self-employed

Self-employed workers facing financial difficulties as a result of coronavirus are set to be offered a package of support from the government.

Chancellor Rishi Sunak will unveil the measures later.

He set out plans for 80% wage subsidies for staff kept on by employers last week - and the PM has said he wants similar protection for freelancers.

However, Boris Johnson added he could not promise the UK would beat the virus "without any kind of hardship at all".

The total number of people in the UK to die with Covid-19, the disease caused by Coronavirus, has reached 465.

Mr. Sunak said last week that the government would cover wages of up to £2,500 a month for staff being kept on by their employer, as part of "unprecedented" measures to prevent workers from being laid off.

The chancellor later said drawing up plans to help self-employed people had proved "incredibly complicated".

Dr. Adam Marshall, director-general of the British Chambers of Commerce, said: "For many people that have seen their businesses disappear in the blink of an eye, things like statutory sick pay or universal credit just isn't enough.

"It doesn't need to be perfect - we just need a system in place," he told the BBC's Today programme.

John Healey, a self-employed driving instructor from Lancashire, said: "We don't need a lot, we just need something.

"But by doing nothing, we just go to the wall, basically," he told the Today programme.

Why is it taking so long to help the self-employed?

Self-employed bailout ‘problematic’

Jobless struggling to claim benefits

BBC Newsnight's political editor Nick Watt said all the indications from talking to ministers and Conservative MPs were that the chancellor would match the 80% salary support given to PAYE employees.

He said one minister said the reason why it had taken so long was because it was fiendishly complicated but "when this chancellor acts, he acts big".

BBC business editor Simon Jack said calculating a support wage for the self-employed was so difficult because their income could be lumpy, irregular and intermittent.

Government sources said they had struggled to find a way to avoid paying people who do not need help.

Below is the video of the earlier announcement where the chancellor outlined support for PAYE workers.

26 Mar
UK government fends off criticism with plan to pay self-employed

The chancellor, Rishi Sunak, is expected to announce that the taxpayer will pay self-employed workers up to 80% of their recent earnings to help contain the economic impact of coronavirus, as 470,000 extra benefits claims sparked warnings of an “unemployment crisis”.

Sunak has been under growing pressure to do more for the UK’s 5 million self-employed after announcing an unprecedented job retention scheme for employees last Friday, that will see thousands paid to stay at home.

It comes as Covid-19 claimed the life of a 21-year-old woman from Buckinghamshire, according to her family, and Britain’s deputy ambassador to Hungary, who was 37. It was announced on Wednesday night that the number of confirmed UK cases stood at 9,529 people and the death toll had risen by 41 to 463.

The prime minister promised on Wednesday that the government was preparing to “put its arms around every worker.” He said the self-employed would be offered “parity” with employees – though Whitehall sources cautioned that did not mean the two schemes would be identical.

Details of the support package were still being finalised last night, but sources with knowledge of the plan suggested it would echo the promise of covering 80% of recent earnings that Sunak made to employees last week.

It could be subject to a lower cap than the £2,500 in monthly pre-tax income available in that scheme, however – because the self-employed tend to pay less tax. Some groups, including those already claiming universal credit, could be excluded.

Speaking at the daily Downing Street press conference, the prime minister said: “I genuinely don’t think there’s been a time in our history in the last century, certainly, when the government of this country has put its arms around so many people to get us through a very tough time. We will get through it, and we will get through it together.”

Sunak significantly increased the generosity of universal credit as part of last week’s package, and made it available to more self-employed workers.

A sharp surge in claims for universal credit has underlined the severe economic toll the coronavirus is already taking on Britain’s workforce.

The work and pensions secretary, Thérèse Coffey, revealed on Wednesday that 477,000 people had applied for the benefit in the past nine days. That is more than during any entire month of the 2008-09 financial crisis.

“We don’t know if they’re self-employed or at different stages, and I want to assure people that help, even if it’s not currently the level of help they would like, is there to help them through the safety net of the welfare state,” she said.

Karl Handscomb, senior economist at the Resolution Foundation, said: “The unprecedented surge in new universal credit claims shows that the UK is already in the midst of an unemployment crisis. The increase in claims is putting huge pressure on our social security system, and is driven by a huge hit to family incomes.

“The government was right to increase the generosity of the benefits system last week. It now needs to ensure the resources are there so that claims are processed quickly, and people receive support as soon as possible.”

The Department for Work and Pensions (DWP) is redeploying 10,000 staff to help process the extraordinary upsurge in new applications, making it the department’s main focus in the weeks ahead.

Its permanent secretary, Peter Schofield, said: “We made a decision that managing claims and making payments is a number one priority for DWP. Operationally we can deprioritise other things.”

The department has so far redeployed 1,500 members of staff to help with the sharp rise in universal credit claims, and is to increase this to 3,900 by the end of the week.

The shadow chancellor, John McDonnell, who will return to the backbenches in ten days’ time when a new Labour leader takes over, used what is likely to be one of his final speeches from the frontbench to call for the government to announce details of its scheme for supporting self-employed workers urgently.

“If people claim fraudulently while still working, they will rightly be prosecuted. But right now millions of cabbies, childminders, plumbers, electricians, painters and decorators and actors have all lost work or closed down their businesses. As have builders, designated as the self-employed under the construction industry scheme and they have no income. They need a solution, now,” he said.

Meanwhile businesses continued to demand clarity about who can keep travelling to work, as firms called for workers to come in despite Monday’s plea by the prime minister for the nation to “stay at home”.

Carolyn Fairbairn, director general of the CBI, tweeted: “It’s clear that many firms do not know whether to stay open or to close.” She said she would meet the business secretary and request better guidance.

The warnings come amid widespread confusion among businesses about how to respond to the lockdown. Halfords, the car parts, bike and servicing group, is reopening some of its stores this week after being designated an essential service. It had closed its shops on Monday night as Johnson addressed the nation.

Mike Ashley’s Sports Direct retail chain had intended to remain open but was forced to backtrack after a public outcry.

Frances O’Grady, the director general of the TUC, said the government needed to crack down on non-essential companies making staff attend work, telling ministers they needed to directly intervene if employers flouted the rules.

“Companies like Sports Direct shouldn’t be putting their profits before people’s lives. No one in non-essential services should be forced to go to work. And no one should be sacked for following official instructions and staying home,” she said.

Off-licences and other shops licensed to sell alcohol are now allowed to stay open, after an 11th-hour change, while several companies are lobbying ministers to be allowed special treatment.

The mayor of Greater Manchester, Andy Burnham, called for tough enforcement action against companies forcing their staff to travel to work in non-essential jobs during the lockdown.

“This is wrong. It’s risking the health of workers, their families and wider society. In the absence of a clear government instruction to end non-essential work I am taking legal advice about whether Greater Manchester police or other agencies can take enforcement action against companies which are exposing their employees in this way.”

26 Mar
That Discomfort You’re Feeling Is Grief

Great article by Scott Berinato or Harvard Business Review

March 23, 2020

We’ve made our coronavirus coverage free for all readers. To get all of HBR’s content delivered to your inbox, sign up for the Daily Alert newsletter.

Some of the HBR edit staff met virtually the other day — a screen full of faces in a scene becoming more common everywhere. We talked about the content we’re commissioning in this harrowing time of a pandemic and how we can help people. But we also talked about how we were feeling. One colleague mentioned that what she felt was grief. Heads nodded in all the panes.

If we can name it, perhaps we can manage it. We turned to David Kessler for ideas on how to do that. Kessler is the world’s foremost expert on grief. He co-wrote with Elisabeth Kübler-Ross On Grief and Grieving: Finding the Meaning of Grief through the Five Stages of Loss. His new book adds another stage to the process, Finding Meaning: The Sixth Stage of GriefKessler also has worked for a decade in a three-hospital system in Los Angeles. He served on their biohazard’s team. His volunteer work includes being an LAPD Specialist Reserve for traumatic events as well as having served on the Red Cross’s disaster services team. He is the founder of www.grief.com which has over 5 million visits yearly from 167 countries.

Kessler shared his thoughts on why it’s important to acknowledge the grief you may be feeling, how to manage it, and how he believes we will find meaning in it. The conversation is lightly edited for clarity.

HBR: People are feeling any number of things right now. Is it right to call some of what they’re feeling grief?

Kessler: Yes, and we’re feeling a number of different griefs. We feel the world has changed, and it has. We know this is temporary, but it doesn’t feel that way, and we realize things will be different. Just as going to the airport is forever different from how it was before 9/11, things will change and this is the point at which they changed. The loss of normalcy; the fear of economic toll; the loss of connection. This is hitting us and we’re grieving. Collectively. We are not used to this kind of collective grief in the air.

You said we’re feeling more than one kind of grief?

Yes, we’re also feeling anticipatory grief. Anticipatory grief is that feeling we get about what the future holds when we’re uncertain. Usually it centers on death. We feel it when someone gets a dire diagnosis or when we have the normal thought that we’ll lose a parent someday. Anticipatory grief is also more broadly imagined futures. There is a storm coming. There’s something bad out there. With a virus, this kind of grief is so confusing for people. Our primitive mind knows something bad is happening, but you can’t see it. This breaks our sense of safety. We’re feeling that loss of safety. I don’t think we’ve collectively lost our sense of general safety like this. Individually or as smaller groups, people have felt this. But all together, this is new. We are grieving on a micro and a macro level.

What can individuals do to manage all this grief?

Understanding the stages of grief is a start. But whenever I talk about the stages of grief, I have to remind people that the stages aren’t linear and may not happen in this order. It’s not a map but it provides some scaffolding for this unknown world. There’s denial, which we say a lot of early on: This virus won’t affect us. There’s anger: You’re making me stay home and taking away my activities. There’s bargaining: Okay, if I social distance for two weeks everything will be better, right? There’s sadness: I don’t know when this will end. And finally there’s acceptance. This is happening; I have to figure out how to proceed.

Acceptance, as you might imagine, is where the power lies. We find control in acceptance. I can wash my hands. I can keep a safe distance. I can learn how to work virtually.

When we’re feeling grief there’s that physical pain. And the racing mind. Are there techniques to deal with that to make it less intense?

Let’s go back to anticipatory grief. Unhealthy anticipatory grief is really anxiety, and that’s the feeling you’re talking about. Our mind begins to show us images. My parents getting sick. We see the worst scenarios. That’s our minds being protective. Our goal is not to ignore those images or to try to make them go away — your mind won’t let you do that and it can be painful to try and force it. The goal is to find balance in the things you’re thinking. If you feel the worst image taking shape, make yourself think of the best image. We all get a little sick and the world continues. Not everyone I love dies. Maybe no one does because we’re all taking the right steps. Neither scenario should be ignored but neither should dominate either.

Anticipatory grief is the mind going to the future and imagining the worst. To calm yourself, you want to come into the present. This will be familiar advice to anyone who has meditated or practiced mindfulness but people are always surprised at how prosaic this can be. You can name five things in the room. There’s a computer, a chair, a picture of the dog, an old rug, and a coffee mug. It’s that simple. Breathe. Realize that in the present moment, nothing you’ve anticipated has happened. In this moment, you’re okay. You have food. You are not sick. Use your senses and think about what they feel. The desk is hard. The blanket is soft. I can feel the breath coming into my nose. This really will work to dampen some of that pain.

You can also think about how to let go of what you can’t control. What your neighbor is doing is out of your control. What is in your control is staying six feet away from them and washing your hands. Focus on that.

Finally, it’s a good time to stock up on compassion. Everyone will have different levels of fear and grief and it manifests in different ways. A coworker got very snippy with me the other day and I thought, That’s not like this person; that’s how they’re dealing with this. I’m seeing their fear and anxiety. So be patient. Think about who someone usually is and not who they seem to be in this moment.

One particularly troubling aspect of this pandemic is the open-endedness of it.

This is a temporary state. It helps to say it. I worked for 10 years in the hospital system. I’ve been trained for situations like this. I’ve also studied the 1918 flu pandemic. The precautions we’re taking are the right ones. History tells us that. This is survivable. We will survive. This is a time to overprotect but not overreact.

And, I believe we will find meaning in it. I’ve been honored that Elisabeth Kübler-Ross’s family has given me permission to add a sixth stage to grief: Meaning. I had talked to Elisabeth quite a bit about what came after acceptance. I did not want to stop at acceptance when I experienced some personal grief. I wanted meaning in those darkest hours. And I do believe we find light in those times. Even now people are realizing they can connect through technology. They are not as remote as they thought. They are realizing they can use their phones for long conversations. They’re appreciating walks. I believe we will continue to find meaning now and when this is over.

What do you say to someone who’s read all this and is still feeling overwhelmed with grief?

Keep trying. There is something powerful about naming this as grief. It helps us feel what’s inside of us. So many have told me in the past week, “I’m telling my coworkers I’m having a hard time,” or “I cried last night.” When you name it, you feel it and it moves through you. Emotions need motion. It’s important we acknowledge what we go through. One unfortunate byproduct of the self-help movement is we’re the first generation to have feelings about our feelings. We tell ourselves things like, I feel sad, but I shouldn’t feel that; other people have it worse. We can — we should — stop at the first feeling. I feel sad. Let me go for five minutes to feel sad. Your work is to feel your sadness and fear and anger whether or not someone else is feeling something. Fighting it doesn’t help because your body is producing the feeling. If we allow the feelings to happen, they’ll happen in an orderly way, and it empowers us. Then we’re not victims.

In an orderly way?

Yes. Sometimes we try not to feel what we’re feeling because we have this image of a “gang of feelings.” If I feel sad and let that in, it’ll never go away. The gang of bad feelings will overrun me. The truth is a feeling moves through us. We feel it and it goes and then we go to the next feeling. There’s no gang out to get us. It’s absurd to think we shouldn’t feel grief right now. Let yourself feel the grief and keep going.


Scott Berinato is a senior editor at Harvard Business Review and the author of Good Charts Workbook: Tips Tools, and Exercises for Making Better Data Visualizations and Good Charts: The HBR Guide to Making Smarter, More Persuasive Data Visualizations.

26 Mar
GOVERNMENT UNVEALS PACKAGE FOR SELF-EMPLOYED

As you may have seen the Government have just announced an update to the support for Self-Employed.

Self-Employed Income Support Scheme Key points are:

- 80% of average profits over past 3 years

- Maximum of £2500 per month - Deliverable and fair / targeted support

- Trading profits up to £50K only

- Make majority of income from self-employed.

- Must have tax return for 2019 - 95% of people will benefit

- Accessible not later than June

- Allow anyone who missed filing deadline in Jan can apply

- For now - self-employed can access business loan

- Tax payments can be deferred

- Universal credit accessed in full.

If you have any questions in the meantime please do not hesitate to contact us and we will let you know if there are any further developments.

0330 3350400

26 Mar
Claim for wage costs through the Coronavirus Job Retention Scheme

Guidance for employers on the coronavirus (COVID-19) Job Retention Scheme.

Published 26 March 2020

From:

HM Revenue & Customs

Contents

  1. Who can claim
  2. Employees you can claim for
  3. Work out what you can claim
  4. What you’ll need to make a claim
  5. Claim

The Coronavirus Job Retention Scheme is a temporary scheme open to all UK employers for at least three months starting from 1 March 2020. We expect the scheme to be up and running by the end of April. It is designed to support employers whose operations have been severely affected by coronavirus (COVID-19).

Employers can use a portal to claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage. Employers can use this scheme anytime during this period.

The scheme is open to all UK employers that had created and started a PAYE payroll scheme on 28 February 2020.

Who can claim

Any UK organisation with employees can apply, including:

  • businesses
  • charities
  • recruitment agencies (agency workers paid through PAYE)
  • public authorities

You must have created and started a PAYE payroll scheme on or before 28 February 2020 and have a UK bank account.

Where a company is being taken under the management of an administrator, the administrator will be able to access the Job Retention Scheme.

Public sector organisations

The government expects that the scheme will not be used by many public sector organisations, as the majority of public sector employees are continuing to provide essential public services or contribute to the response to the coronavirus outbreak.

Where employers receive public funding for staff costs, and that funding is continuing, we expect employers to use that money to continue to pay staff in the usual fashion – and correspondingly not furlough them. This also applies to non-public sector employers who receive public funding for staff costs.

Organisations who are receiving public funding specifically to provide services necessary to respond to COVID-19 are not expected to furlough staff.

In a small number of cases, for example where organisations are not primarily funded by the government and whose staff cannot be redeployed to assist with the coronavirus response, the scheme may be appropriate for some staff.

Employees you can claim for

Furloughed employees must have been on your PAYE payroll on 28 February 2020, and can be on any type of contract, including:

  • full-time employees
  • part-time employees
  • employees on agency contracts
  • employees on flexible or zero-hour contracts

The scheme also covers employees who were made redundant since 28 February 2020, if they are rehired by their employer.

To be eligible for the subsidy, when on furlough, an employee can not undertake work for or on behalf of the organisation. This includes providing services or generating revenue. While on furlough, the employee’s wage will be subject to usual income tax and other deductions.

This scheme is only for employees on agency contracts who are not working.

If an employee is working, but on reduced hours, or for reduced pay, they will not be eligible for this scheme and you will have to continue paying the employee through your payroll and pay their salary subject to the terms of the employment contract you agreed.

Employers should discuss with their staff and make any changes to the employment contract by agreement. When employers are making decisions in relation to the process, including deciding who to offer furlough to, equality and discrimination laws will apply in the usual way.

To be eligible for the subsidy employers should write to their employee confirming that they have been furloughed and keep a record of this communication.

Employees hired after 28 February 2020 cannot be furloughed or claimed for in accordance with this scheme.

You do not need to place all your employees on furlough. However, those employees who you do place on furlough cannot undertake work for you.

If your employee is on unpaid leave

Employees on unpaid leave cannot be furloughed, unless they were placed on unpaid leave after 28 February.

If your employee is on Statutory Sick Pay

Employees on sick leave or self-isolating should get Statutory Sick Pay, but can be furloughed after this.

Employees who are shielding in line with public health guidance can be placed on furlough.

If your employee has more than one job

If your employee has more than one employer they can be furloughed for each job. Each job is separate, and the cap applies to each employer individually.

If your employee does volunteer work or training

A furloughed employee can take part in volunteer work or training, as long as it does not provide services to or generate revenue for, or on behalf of your organisation.

However, if workers are required to for example, complete online training courses whilst they are furloughed, then they must be paid at least the NLW/NMW for the time spent training, even if this is more than the 80% of their wage that will be subsidised.

If your employee is on Maternity Leave, contractual adoption pay, paternity pay or shared parental pay

Individuals who are on or plan to take Maternity Leave must take at least 2 weeks off work (4 weeks if they work in a factory or workshop) immediately following the birth of their baby. This is a health and safety requirement. In practice, most women start their Maternity Leave before they give birth.

If your employee is eligible for Statutory Maternity Pay (SMP) or Maternity Allowance, the normal rules apply, and they are entitled to claim up to 39 weeks of statutory pay or allowance.

Employees who qualify for SMP, will still be eligible for 90% of their average weekly earnings in the first 6 weeks, followed by 33 weeks of pay paid at 90% of their average weekly earnings or the statutory flat rate (whichever is lower). The statutory flat rate is currently £148.68 a week, rising to £151.20 a week from April 2020.

If you offer enhanced (earnings related) contractual pay to women on Maternity Leave, this is included as wage costs that you can claim through the scheme.

The same principles apply where your employee qualifies for contractual adoption, paternity or shared parental pay.

Work out what you can claim

Employers need to make a claim for wage costs through this scheme.

You will receive a grant from HMRC to cover the lower of 80% of an employee’s regular wage or £2,500 per month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage. Fees, commission and bonuses should not be included.

At a minimum, employers must pay their employee the lower of 80% of their regular wage or £2,500 per month. An employer can also choose to top up an employee’s salary beyond this but is not obliged to under this scheme.

We will issue more guidance on how employers should calculate their claims for Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions, before the scheme becomes live.

Full time and part time employees

For full time and part time salaried employees, the employee’s actual salary before tax, as of 28 February should be used to calculate the 80%. Fees, commission and bonuses should not be included.

Employees whose pay varies

If the employee has been employed (or engaged by an employment business) for a full twelve months prior to the claim, you can claim for the higher of either:

  • the same month’s earning from the previous year
  • average monthly earnings from the 2019-20 tax year

If the employee has been employed for less than a year, you can claim for an average of their monthly earnings since they started work.

If the employee only started in February 2020, use a pro-rata for their earnings so far to claim.

Once you’ve worked out how much of an employee’s salary you can claim for, you must then work out the amount of Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions you are entitled to claim.

Employer National Insurance and Pension Contributions

All employers remain liable for associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on behalf of their furloughed employees.

You can claim a grant from HMRC to cover wages for a furloughed employee, equal to the lower of 80% of an employee’s regular salary or £2,500 per month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on paying those wages.

You can choose to provide top-up salary in addition to the grant. Employer National Insurance Contributions and automatic enrolment contribution on any additional top-up salary will not be funded through this scheme. Nor will any voluntary automatic enrolment contributions above the minimum mandatory employer contribution of 3% of income above the lower limit of qualifying earnings (which is £512 per month until 5th April and will be £520 per month from 6th April 2020 onwards).

National Living Wage/National Minimum Wage

Individuals are only entitled to the National Living Wage (NLW)/National Minimum Wage (NMW) for the hours they are working.

Therefore, furloughed workers, who are not working, must be paid the lower of 80% of their salary, or £2,500 even if, based on their usual working hours, this would be below NLW/NMW.

However, if workers are required to for example, complete online training courses whilst they are furloughed, then they must be paid at least the NLW/NMW for the time spent training, even if this is more than the 80% of their wage that will be subsidised.

What you’ll need to make a claim

Employers should discuss with their staff and make any changes to the employment contract by agreement. Employers may need to seek legal advice on the process. If sufficient numbers of staff are involved, it may be necessary to engage collective consultation processes to procure agreement to changes to terms of employment.

To claim, you will need:

  • your ePAYE reference number
  • the number of employees being furloughed
  • the claim period (start and end date)
  • amount claimed (per the minimum length of furloughing of 3 weeks)
  • your bank account number and sort code
  • your contact name
  • your phone number

You will need to calculate the amount you are claiming. HMRC will retain the right to retrospectively audit all aspects of your claim.

Claim

You can only submit one claim at least every 3 weeks, which is the minimum length an employee can be furloughed for. Claims can be backdated until the 1 March if applicable.

What to do after you’ve claimed

Once HMRC have received your claim and you are eligible for the grant, they will pay it via BACS payment to a UK bank account.

You should make your claim in accordance with actual payroll amounts at the point at which you run your payroll or in advance of an imminent payroll.

You must pay the employee all the grant you receive for their gross pay, no fees can be charged from the money that is granted. You can choose to top up the employee’s salary, but you do not have to.

When the government ends the scheme

When the government ends the scheme, you must make a decision, depending on your circumstances, as to whether employees can return to their duties. If not, it may be necessary to consider termination of employment (redundancy).

Employees that have been furloughed

Employees that have been furloughed have the same rights as they did previously. That includes Statutory Sick Pay entitlement, maternity rights, other parental rights, rights against unfair dismissal and to redundancy payments.

Once the scheme has been closed by the government, HMRC will continue to process remaining claims before terminating the scheme.

Income tax and Employee National Insurance

Wages of furloughed employees will be subject to Income Tax and National Insurance as usual. Employees will also pay automatic enrolment contributions on qualifying earnings, unless they have chosen to opt-out or to cease saving into a workplace pension scheme.

Employers will be liable to pay Employer National Insurance contributions on wages paid, as well as automatic enrolment contributions on qualifying earnings unless an employee has opted out or has ceased saving into a workplace pension scheme.

Tax Treatment of the Coronavirus Job Retention Grant

Payments received by a business under the scheme are made to offset these deductible revenue costs. They must therefore be included as income in the business’s calculation of its taxable profits for Income Tax and Corporation Tax purposes, in accordance with normal principles.

Businesses can deduct employment costs as normal when calculating taxable profits for Income Tax and Corporation Tax purposes.

Published 26 March 2020

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme?utm_content=bufferfce45&utm_medium=social&utm_source=linkedin.com&utm_campaign=buffer

25 Mar
Companies to receive 3-month extension period to file accounts during COVID-19

Businesses will be given an additional 3 months to file accounts with Companies House to help companies avoid penalties as they deal with the impact of COVID-19.

From today (25 March 2020), businesses will be able to apply for a 3-month extension for filing their accounts.

This joint initiative between the government and Companies House will mean businesses can prioritise managing the impact of Coronavirus.

There are approximately 4.3 million businesses on the Companies House register, and all companies must submit their accounts and reports each year. Under normal circumstances, companies that file accounts late are issued with an automatic penalty.

As part of the agreed measures, while companies will still have to apply for the 3-month extension to be granted, those citing issues around COVID-19 will be automatically and immediately granted an extension. Applications can be made through a fast-tracked online system which will take just 15 minutes to complete.

Business Secretary Alok Sharma said:

  • "We have outlined a business support package on an unprecedented scale, backing companies, and their employees through these challenging times."
  • "But it is important that our support is not limited to financial assistance. We are determined to help businesses in any way we can so that they can focus all their efforts on dealing with the impact of Coronavirus, and this new offer of a 3-month extension for filing accounts is part of that."

Companies House Chief Executive, Louise Smyth said:

  • "We recognise that these are uncertain times for businesses and that’s why we’re doing all we can to help."
  • "By easing the burden, we can help businesses through this period and enable them to thrive in the future. I would encourage companies who believe they would benefit from this new flexibility to make an application in good time."

Head of Corporate Governance, Institute of Directors, Roger Barker said:

  • These measures will be welcomed by directors impacted by COVID-19. Our members will be pleased to see the government taking proactive steps to support them through this difficult time. By easing the administrative burden that comes with running a business, the government is supporting businesses to focus on the fundamentals during this exceptional period.

The government is also in close consultation with company representative bodies, legal practitioners and others, to look at solutions for the impact COVID-19 may have on companies’ ability to hold Annual General Meetings. Updated guidance on this matter will be published in due course.

 

 

25 Mar
More sites closing down

Bovis Homes, Barratt Developments, Taylor Wimpey and Speller Metcalfe have joined the likes of ISG and Galliard in closing their sites in response to the Covid-19 pandemic.

Bovis Homes said: “Following the government’s statement yesterday we have commenced decommissioning activity at all of our sites. There will be teams going on-site in the short term for the essential work of making the sites safe and secure.

“During this period we will be rigorously reinforcing to our people and subcontractors the need to follow government guidelines, especially those around hygiene and social distancing. We will be constantly reviewing this situation in line with the government’s position.

“For those customers who expect and wish to move in over the coming days, we will look to do the right thing and facilitate this if it is at all practical.”

Barratt Developments said: “We have taken the decision to temporarily close our 400 offices and sites across the country. We are in the process of doing this safely and securely, as quickly as possible.”

Taylor Wimpey said: "Today, we have taken the decision to close our show homes, sales centres, and construction sites across the UK to help prevent the spread of Covid-19. Although the latest government guidance has not ordered the closure of construction sites, we are taking action because we believe it is the right thing to do. As we need to make sure that we close down our construction sites in a responsible manner, it is necessary for a small amount of work to continue to ensure we leave our sites safe and secure. Please be assured that we will be sending our employees and subcontractors home as soon as is practically possible and that all employees and subcontractors have received guidance on appropriate social distancing on site."

Speller Metcalfe said: “With government advice currently unclear, we have agreed that the morally responsible course of action is to suspend site operations as soon as is possible, in order to reduce risk to our staff and our supply chain and in the national interest of preserving life.

“Our site teams are currently working hard to ensure that sites are shut down safely and securely, as well as making preparations for safe and prompt continuation of works as soon as we are able to do so.

“The only sites which will remain open are those where we are delivering critical works for the NHS – ensuring the well-being of those who continue to work on these sites will be our number one priority and we will be working closely with our clients and supply chain to ensure all possible measures are in place to ensure social distancing and enhanced hygiene regimes are adhered to at all times.

“Speller Metcalfe’s office functions will continue to operate as usual, with staff working from home and available via email and mobile.

“As a competent and socially-responsible contractor we firmly believe that this is the best thing to do to protect the health, safety and wellbeing of all. We hope that other contractors continue to follow suit, and call on the government to officially close all sites as far as is possible in this time of national emergency.”

Knight Build Ltd, a £60m turnover contractor based in Essex, is another deciding to pull offsite. HSEQ manager Dominick Gallagher explained: We at KBL, have made the decision to reluctantly close all of our sites for the next three weeks. Once again, the government have issued an unclear message to the construction industry, which is in turn contributing massively to overcrowded Tubes and construction environments, such as welfare facilities, where social distancing is clearly not being followed."

He added: “We believe the risk is too great and we have a duty of care to ensure that we do not risk contributing to the pandemic and we certainly do not wish to put any of our staff, labour resources, subcontractors or supply chain in any way of harm. Hopefully the government will address the issue with the self-employed in a time when they are preaching about the importance of looking after the vulnerable.”

Earlier this morning we reported that ISG and Galliard had also decided to close down their sites until the health crisis is resolved.

The decisions to close sites come depsite Robert Jenrick, the secretary of state for housing, communities and local government, saying that it was fine to keep construciton sites open. He said just last night: “Advice for the housing, construction & building maintenance industries: If you can work from home, do so. If you are working on site, you can continue to do so. But follow Public Health England guidance on social distancing.”

25 Mar
The Government urgently needs to come up with a plan to support self-employed workers

What a great representation by John McDonnell in Parliament yesterday for the self-employed, agency workers and people on reduced hours.


Let's get a decision made for these hard working people and also including the temporary agency workers and workers asked to work on reduced hours.


https://twitter.com/johnmcdonnellMP/status/1242484700599353350?s=20

24 Mar
CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME (CBILS) – ACCREDITED LENDERS AND PARTNERS

The Coronavirus Business Interruption Loan Scheme (CBILS) is now available through participating lenders

HOW CAN I ACCESS THE SCHEME?

CBILS is available through the British Business Bank’s 40+ accredited lenders, which are listed on the British Business Bank website here. Note: Not every accredited lender can provide every type of finance listed.

In the first instance, businesses should approach their own provider – ideally via the lender’s website. They may also consider approaching other lenders if they are unable to access the finance they need.

Decision-making on whether you are eligible for CBILS is fully delegated to the 40+ accredited CBILS lenders. These lenders range from high-street banks, to challenger banks, asset-based lenders and smaller specialist local lenders.

Note: if the accredited lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.

Additional application notes:

Given there is likely to be a big demand for facilities once the scheme goes live, we ask you to please:

  • Consider applying via the lender’s website in the first instance. Telephone lines are likely to be busy and branches may have limited capacity to handle enquires due to social distancing
  • Consider the urgency of your need – it is possible that some businesses may be looking for regular longer-term finance rather than ‘emergency’ finance, and there may other businesses with a more urgent need to speak with a lender

 WHAT TYPES OF FINANCE ARE AVAILABLE AND WHO OFFERS WHICH TYPE?

CBILS supports a wide range of business finance facilities, including:

  • Term loans
  • Overdrafts
  • Asset finance
  • Invoice finance

Note: Not every lender can provide every type of finance listed.

CBILS is available through the British Business Bank’s 40+ accredited lenders, which are listed on the British Business Bank website here.

AM I ELIGIBLE FOR FINANCE UNDER CBILS?

The scheme is designed to support smaller businesses (SMEs) who don’t meet a lender’s normal lending requirements for a fully commercial loan or other facility, but who are considered viable in the longer-term.

To be eligible for a facility under CBILS, your business must:

  • Be UK based in its business activity with annual turnover or no more than £45m
  • Have a borrowing proposal which, were it not for the COVID-19 pandemic, would be considered viable by the lender, and for which the lender believes the provision of finance will enable your business to trade out of any short-to-medium term difficulty
  • Smaller businesses from any sector[1] can apply for the full amount of the facility.

 Please review our quick eligibility checklist here 

IMPORTANT INFORMATION FOR SMEs

Please note: The CBILS guarantee is to the lender and not the business. As with any other commercial transaction, the borrower is always 100% liable for repayment of the facility supported by CBILS

CBILS decision making is fully delegated to the accredited lenders. Any queries from a business with an active or historic EFG facility, including guarantee fee collection or alterations to their repayment profile should raise them with their lender, and not with the British Business Bank.

For further information, please read our CBILS FAQs for SMEs document

If you are an Accredited Lender, or a prospective Lender, please click here to go to our Lender pages.

[1] Exclusions: Banks, Building Societies, Insurers and Reinsurers (but not insurance brokers); The public sector including state funded primary and secondary schools; Employer, professional, religious or political membership organisation or trade unions.