HMRC backflips on helpline closure announcements
HMRC has backflipped on this week's announcement that long periods of shutdown for self-assessment and VAT helplines,...
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The Chancellor has outlined an unprecedented package of measures to protect millions of people’s jobs and incomes as part of the national effort in response to coronavirus.
The government's Coronavirus Job Retention Scheme has been announced in response to its instructions for the closure of entertainment and hospitality premises, like bars and restaurants, to limit the spread of coronavirus.
"We continue to do everything possible to protect the public from coronavirus. We have been working round the clock so that we can today confirm an unprecedented package of support to protect people’s jobs and wages. And we’re strengthening our safety net at the same time," said Chancellor Rishi Sunak.
"I said we would help individuals, businesses and the most vulnerable through this outbreak and I meant it. We will do whatever it takes in the weeks and months ahead."
According to the Chancellor, employers can now contact HMRC for a grant to cover most of the wages of their workforce who remain on payroll but are temporarily not working during the coronavirus outbreak. Any employer in the country – small or large, charitable or non-profit – will be eligible for the scheme.
Mr Sunak confirmed on Friday that UK workers of any employer who is placed on the Coronavirus Job Retention Scheme can keep their job, with the government paying up to 80 per cent of a worker’s wages, up to a total of £2,500 per worker each month. These will be backdated to 1 March and will be initially open for three months, to be extended if necessary.
Moreover, VAT payments due between now and the end of June will be deferred, meaning that no VAT registered business will have to make a VAT payment normally due with their VAT return to HMRC in that period. Income tax payments due in July 2020 under the self assessment system will be deferred to January 2021, benefiting up to 5.7 million self-employed businesses.
Additionally, the Coronavirus Business Interruption Loan Scheme, launched at budget, will now be interest free for 12 months.
The Chancellor also said that the standard rate in Universal credit and Tax Credits will be increased by £20 a week for one year from 6 April, meaning claimants will be up to £1040 better off, while nearly £1 billion of additional support will be made available to renters. From April, Local Housing Allowance rates will pay for at least 30 per cent of market rents in each area.
"We have committed to doing whatever it takes to support businesses and households through these unprecedented times, and today shows just how far we are willing to go," said Business Secretary Alok Sharma.
"This intervention is unheard of in peacetime, but it is crucial we stand behind our businesses and those that rely on them for work and income."
All measures announced on Friday across the business and welfare package are UK-wide.
In order to help delay the spread of coronavirus, the government has instructed entertainment and hospitality businesses including pubs, bars and restaurants to close.
The government confirmed that the decision on closures will be reviewed on a monthly basis, and are being implemented across the whole of the UK in agreement with the devolved administrations. If needed, the government will enforce these measures by law.