The Coronavirus Government Grant Flowchart

 

Hard to believe how much our world has turned upside down. Now in week two of ‘lock down’, some people are working even harder than ever at enormous personal risk, while others are going to be paid to stay at home. Some are surrounded by family, others self isolating alone. The extremes are stark, and the government are attempting to provide support, in a manner which could never have been anticipated before. Attempting to keep food on our tables and the wheels of industry, if not exactly turning, in ‘hibernation’ til this situation passes.

Cash is king at the moment. Not in our pockets as we’re discouraged from paying for anything with the ‘filthy virus carrying lucre’ but certainly for use with our cards. Conserve it right now, we don’t know how long this is going to last. So it will help if everyone has taken advantage of the mortgage/loan holidays on offer, contacted their utilities providers, cancelled unnecessary DD’s, agreed a deferred/reduced payment plan with landlords.

No one is allowed to have their utilities cut off or have their house repossessed for next three months (at least). 

So the main costs remaining are food, TV entertainment packages, phone and wifi/broadband.

The governments support falls into three main camps.

We’ve made a Financial Support Flowchart to help explain and signpost the options. It doesn’t cover every eventuality but it is a good tool to start you on your decision making path.

Summary of key benefits

For the self employed:

  • 80% taxable grant equivalent of PC (pre corona) monthly profit, averaged over three years, for those earning less than £50,000 a year, as submitted on self assessment form
  • Need to have been trading before April 2019 and submitted a tax return
  • Encouraged to apply for ‘new style’ Employment and Support Allowance and/or new (no minimum income threshold) Universal Credit as grant not due til June
  • Defer VAT and Tax payments for at least six months
  • Can work while being supported by the grant

Sorry to say if you’ve been working as a self employed sole trader since April 2019 and have not yet need to submit your tax return you are not in the system and are not covered.

Consider applying for a 12 months interest free business loan through the Coronavirus Business Interruption Support Scheme (CBILS) or look into new style ESA (which has been extended to support self employed temporarily) and Universal Credit, the latter especially if you rent your home and have savings under £16,000.

Main exceptions:

  • There’s no support for self employed who over the last three years have averaged over £150,000 in taxable profit.
  • If you were juggling your new business while on PAYE elsewhere, the profit for the self employed portion needs to be more than half your income to qualify.

 

 

For the employed

  • Need to have been in PAYE employment (incl Zero hours) Feb 28th 2020
  • Can receive 80% of salary up to of £2500 per month if ‘furloughed’ on Job Retention Scheme (JRS), which is paid to their employer in April
  • Cannot work for ‘furloughing’ employer but can work for another business or volunteer

 

For small businesses

Grants of up to £25,000

Option to furlough staff (and all company directors)

Interest free loans from the CBILS scheme

No rates to pay for the year 20/21

SSP paid in full for first two weeks of sickness/isolation

 

Good luck to us all in these trying times.

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