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Legal Updates

Chancellors Announcement

23 March 2020 #Employment


The Chancellor has announced the government package to support jobs and incomes during the public health emergency caused by the Coronavirus pandemic.

All employers will be able to apply for a grant from HMRC to cover the wages of people who are not working due to coronavirus shutdowns, but whose employment hasn’t ended.

It will cover 80% of the salaries of these retained workers, up to £2,500 per month.

  • Coronavirus job retention scheme
  • All employers eligible for scheme
  • Covers all workers on PAYE
  • Contact HMRC to cover wages of people who are on payroll
  • Grants will cover 80% of salary
  • Up to £2,500 a month
  • Employers can top up further
  • Workers can retain jobs
  • Backdated to March 1st
  • Open for at least 3 months
  • No limit on the amount of funding available for the scheme
  • First grants within weeks
  • Businesses should be able to receive payments by the end of April

This means that employees in a company can retain their jobs, even if the company cannot afford to pay them, the Chancellor explains. This will include those on zero hours contracts, and anyone paying tax through PAYE.

The Government also announced measures to support the self-employed including:

  • Suspending the minimum income floor for Universal Credit
  • Increasing the Universal Credit standard allowance by £1,000, for the next 12 months and the Working Tax Credit basic element.
  • Increasing access to Universal Credit and paying it at the same rate as SSP for employees
  • Deferring the next self-assessment payment to January 2021

Further Business Support

The Chancellor also announced a £30bn cash injection into the economy through the following measures:

  • The next quarter of business VAT payments will be deferred to the end of June
  • Businesses will have to the end of the financial year to pay business VAT bill (April 2021)
  • Business rates for hospitality, retail, leisure have been abolished to the end of the year
  • Extension of the Coronavirus Business Interruption Loan scheme to be interest free for 12 months (up from 6)

For further advice contact Russell Dann

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

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Russell  Dann

Russell Dann
Associate

E: rdann@clarkslegal.com
T: 0118 960 4653
M: 0792 014 4165

Georgia  Roberts

Georgia Roberts
Senior Solicitor

E: groberts@clarkslegal.com
T: 0118 960 4655
M: 07884 188 976

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Employment team
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