COVID-19 - Lates Guidance

This is our third update on Covid-19 guidance and follows yesterday's announcement that has placed the country under strict measures to restrict movement for three weeks.

At the moment, our advice is to keep monitoring updates on the www.gov.uk website as the Government is updating this regularly and advice is changing daily.

Please do contact us for help, we are keeping the offices partly open and are keeping in touch with clients via telephone, post and email. The office telephones are being diverted today so they can be answered even if we are not in the office.

You can also contact Peter Chaffey on mobile number 07598 999490 or Caroline Candy on mobile number 07969 848154.

Please do send in your records for accounts and tax returns as usual, preferably via email or post. For records that need to be delivered, please contact us to arrange this.

Also, please be aware of scams as there will be texts, phone calls, letters and emails offering support that may be fraudulent.

If you cannot pay your mortgage at the moment, you should speak to your lender to arrange a three month payment holiday. Our previous eNews has provided the HMRC helpline to arrange time to pay for taxes due but please note you do not need to contact them if you are eligible to defer your VAT now or defer your self-assessment tax payment in July. We will provide more details on this as soon as they are known.

The latest updates are as follows:

SSP start date

SSP is to be paid from day 1, rather than day 4, of your absence from work if you are absent from work due to sickness or need to stay at home due to COVID-19. Once the legislation has been passed, this will apply retrospectively from 13 March.

Proof of sickness

If you have COVID-19 or are advised to stay at home, you can get an 'isolation note' by visiting NHS 111 online, rather than visiting a doctor. For COVID-19 cases this replaces the usual need to provide a 'fit note' (sometimes called a 'sick note') after 7 days of sickness absence.

Isolation notes will also be accepted by Jobcentre Plus as evidence of your inability to attend.

If you're self-employed or not eligible for SSP

If you are not eligible for SSP – for example if you are self-employed or earning below the Lower Earnings Limit of £118 per week – and you have COVID-19 or are advised to stay at home, you can now more easily make a claim for Universal Credit or new style Employment and Support Allowance.

If you are eligible for new style Employment and Support Allowance, it will now be payable from day 1 of sickness, rather than day 8, if you have COVID-19 or are advised to stay at home.

Furloughed workers

If you as an employer cannot cover staff costs due to COVID-19, you may be able to access support to continue paying part of your wage, to avoid redundancies.

You will need to discuss with your employee becoming classified as a furloughed worker. This would mean that they are kept on your payroll, rather than being laid off. This is subject to employment law and your contract with the employee.

To qualify for this scheme, the employee should not undertake work for you while furloughed. This will allow you to claim a grant of up to 80% of your wage for all employment costs, up to a cap of £2,500 per month backdated to 1 March 2020.

Employees remain employed while furloughed. You can choose to fund the difference between this payment and the salary, but do not have to.

If a salary is reduced as a result of these changes, the employee may be eligible for support through the welfare system, including Universal Credit.

The Coronavirus Job Retention Scheme is to run for at least 3 months from 1 March 2020, but will extend if necessary.

ACAS recommends that you once you have agreed to furlough an employee, you write to the employee to confirm the furlough start date, the date it will be reviewed and how the employee can keep in touch with you while furloughed.

We are waiting for announcements on how your business can reclaim the wages and will update you as soon as possible. It is intended that the first refunds would be made by the end of April.

Claiming benefits

Whether you are currently in or out of work, if you are on a low income and affected by the economic impacts of COVID-19, you will be able to access the full range of the welfare system, including Universal Credit.

From 6 April 2020 the standard allowance in Universal Credit and the basic element in Working Tax Credit for 1 year will increase by £20 per week on top of planned annual uprating. This will apply to all new and existing Universal Credit claimants and to existing Working Tax Credit claimants.

If you have COVID-19 or are staying at home

You are now able to claim Universal Credit, and if required can access advance payments upfront without needing to attend a jobcentre.

If you are self-employed

You are able to claim Universal Credit, providing you meet the usual eligibility criteria.

To support you with the economic impact of the outbreak, and allow you to follow government guidance on self-isolation and social distancing, from 6 April the requirements of the Minimum Income Floor will be temporarily relaxed. This change will apply to all Universal Credit claimants and will last for the duration of the outbreak.

New claimants will not need to attend the jobcentre to demonstrate gainful self-employment.

Support for rent costs

Individuals should check eligibility for Universal Credit, which is available for people in and out of work. Support for rental costs will be paid through Universal Credit.

From April, Local Housing Allowance rates increase to the 30th percentile of market rents. This applies to all private renters who are new or existing Universal Credit housing element claimants and to existing Housing Benefit claimants.

The government has announced that they will ensure individual and business tenants cannot be evicted in the next three months if their rent is not paid due to coronavirus.

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