IMPORTANT COVID-19 UPDATE
Following yesterdays government announcement. This is a follow up to our previous post https://www.cogs.co.uk/cogs-vs-covid-19
We at Cogs are now getting more questions from our clients on how these new measures impact them. We will give general updates and we will be in contact with clients individually to plan the best course of action.
We are working non stop to provide the best support possible. Please bear with us. I am sure you can appreciate the amount of queries we are getting.
Clearly some businesses are in a unique position where they are being forced to shut and need to take immediate action. Many of you been in touch already. Please, any clients that are in this position please do make contact with us to see how we can help!
Many business are being effected heavily in many ways. Most businesses and people feeling an effect. We are aware of this and here to advise.
An update of where we are with government support
Government backed loans, Business Rates Relief, Council Grants and Time to Pay on Taxes are all relatively unchanged from our last post so please catch that on the link above. Interest free term has been extended to 12 months from 6 on the loans.
1. Wages support
The government yesterday announced that it would fund 80% of gross wages to encourage Employers to keep staff who are unable to work. This may well be the first measure to have a real world effect.
Exact details of the roll out are currently unknown. We know this covers wages up to £2,500 per month. We do know that HMRC are looking to get a portal live to make claims in the coming week. We also know that claims are backdated until the beginning of March. At this stage nothing about the actual process is known.
We will be supporting our clients and helping them to submit these grant applications as well as assisting in planning their overall position as more information is made available. If you are an employer we will automatically be in touch as procedure and exact criteria are revealed.
This is on top of the SSP measures rolled out last week where SSP is due from day 1 and recoverable for Employers.
2. VAT Holiday
A holiday for all businesses has been put in place for VAT payments that would be due up to the middle of June. These liabilities will need to be paid by the end of the year instead. This gives a 7-9 month break on paying depending on your VAT quarter.
Again we will advise each client as our understanding of the details progresses.
3. Personal Tax
All personal tax bills payable in July 2020 will be postponed until January 2021.
4. Universal Credit
Now available to self employed people an equivalent rate of statutory sick pay through the Universal Credit System.
Amounts available in general are also temporarily increased.
The Bottom Line
The support announced is encouraging everyone to keep going. The message is help is on the way, in some form. With so many unknowns it is a case of pushing through until that support arrives.
In this craziest of times we are encouraging you spread the support:-
Try and understand others positions, most if not all are suffering in some way.
Support businesses that may close forever if you don’t stand by them now.
Be considerate to the people you interact with. You often have no idea what they have going on in their lives, especially now.
Respect workers and business owners. A checkout assistant is not going to be able to change supermarket policy or make the line go quicker. A healthcare worker is not going to be able to just deal with you and you alone at the exact time you request it. A call centre operator is not going to in a position to change the Airlines rules. A worker or owner of a business that has been forced to shut is not going to be able to deal with all things at once, their world just fell apart.
Keep pushing, keep supportive, keep positive!