27th March 2020
Last night the Chancellor made an announcement regarding the long awaited support for the self employed.
Below is the link to read the content of the latest news on this.
HMRC are saying, no one should contact HMRC at the moment. HMRC already have ALL the information required to assess relevant claims. HMRC will be inviting the self employed to complete an application, by way of a simple online form. Obviously no detail as yet, but this will follow from HMRC. It is not clear yet, which “profit” figure will be used in the calculation, whether before or after certain tax reliefs.
Some useful links for the self-employed individuals (as of yesterday 26/03/2020).
There will be a small number of people who commenced self employment after last April. We expect that HMRC will issue some guidance on this soon.
Latest update on job retention scheme https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
“To be eligible for the subsidy, when on furlough, an employee can not undertake work for or on behalf of the organisation. This includes providing services or generating revenue. While on furlough, the employee’s wage will be subject to usual income tax and other deductions.
This scheme is only for employees on agency contracts who are not working.
If an employee is working, but on reduced hours, or for reduced pay, they will not be eligible for this scheme and you will have to continue paying the employee through your payroll and pay their salary subject to the terms of the employment contract you agreed.
Employers should discuss with their staff and make any changes to the employment contract by agreement. When employers are making decisions in relation to the process, including deciding who to offer furlough to, equality and discrimination laws will apply in the usual way.
To be eligible for the subsidy employers should write to their employee confirming that they have been furloughed and keep a record of this communication.
Employees hired after 28 February 2020 cannot be furloughed or claimed for in accordance with this scheme.
You do not need to place all your employees on furlough.”
Many thanks and stay safe.
S Coke, J Prevost, N Rivers, R Moore