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<p>The Government is deferring tax payments, through the Income Tax Self-Assessment
(ITSA) and VAT system to help support businesses and the self-employed with cash flows.
VAT payments due between now and mid-June will be deferred. No business will have
to make a VAT payment to HMRC in that period. Income tax payments due in July 2020
under the Self-Assessment system will be deferred to January 2021, benefitting up
to 5.7m self-employed businesses.</p><p> </p><p>The Government has also announced
it is delaying the reforms to the off-payroll working rules (IR35) from April 2020
to April 2021 and the reforms will be legislated for in the 2020 Finance Bill. This
deferral has been announced in response to the spread of Covid-19, to help businesses
and individuals deal with the economic impacts of the pandemic.</p><p> </p><p>The
Coronavirus Business Interruption Loan Scheme is available to self-employed individuals
with an eligible business entity. By providing an 80% government guarantee on finance
facilities up to £5 million, this scheme will help more businesses access the finance
they need. The Government will not charge businesses for this guarantee, and will
also cover the first 12 months of interest payments for businesses. For more information
on the Coronavirus Business Interruption Loan Scheme go to: <a href="http://www.British-business-bank.co.uk/CBILS"
target="_blank">www.British-business-bank.co.uk/CBILS</a>.</p><p> </p><p>The Minimum
Income Floor will be temporarily relaxed for all self-employed UC claimants for 1
year from 6 April. This means a drop in earnings due to the economic impacts of Covid-19
will not affect the amount of UC a claimant receives. This goes further than the Budget
announcement to temporarily relax the MIF only for claimants who are directly affected
by Covid-19, which has already come into effect. For those directly affected or self-isolating,
there will be no attendance requirements, and Universal Credit can be claimed online
or via phone.</p><p> </p><p>Self-employed people unable to work because they are directly
affected by Covid-19 or self-isolating will be eligible for Contributory Employment
and Support Allowance. This is now payable from the first day of sickness, rather
than the eighth. Eligible claimants under 25 will be entitled to £57.90 per week,
and over 25s £73.10 per week.</p><p> </p>
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