Self-Employed & Small Businesses

The UK Government are yet to announce if they will be paying 80% of earnings for those who are self-employed. Self-employed people cannot claim SSP.


Universal Credit

The Government have relaxed the rules for claiming Universal Credit. The ‘minimum income floor’ (the earnings threshold used to work our whether someone can receive benefits and how much) has been suspended. The amount they can receive is equivalent to the statutory sick pay rate.


ESA

Employment and Support Allowance (ESA) will be paid to those eligible from the first day they are sick (rather than the usual 8th day).


Housing

Self-employed with mortgage – Lenders will introduce three-month ‘mortgage holidays’ – for those experiencing financial difficulty due to coronavirus. Individuals should contact their lenders to discuss this.

Self-employed who rent – May be able to obtain contributions towards rent from local housing allowances.


Payment of self-assessment tax (Payments on account)

These payments have been deferred until January 2021. Help may be available from HMRC if coronavirus has impacted a self-employed citizen’s ability to pay taxes.

HMRC have a tax helpline for more advice – available at https://www.gov.uk/government/news/tax-helpline-to-support-businesses-affected-by-coronavirus-covid-19

 

Small Businesses

Smaller businesses (with less than 250 employees) can claim statutory sick pay issued for coronavirus related absences. This will cover up to two weeks’ sick pay per eligible employee.

There is also the option to apply for the coronavirus business interruption loan scheme, which enables businesses to access bank lending and overdrafts.

For those who pay VAT, there will not be a need to make any VAT payments from 20th March to 30th June. Any work conducted in this period that is subject to VAT won’t be due for payment until January 2021.