At the end of last week the government announced an additional £30 billion cash injection to help the UK through the coronavirus criss. The measures include a VAT holiday until June and making grants available to help pay the wages of workers.
The Chancellor said the measures were to help businesses to maintain employment. No business will pay VAT from now to mid-June and they will have until the end of the financial year to repay the bills.
The Chancellor also announced a grant scheme to cover 80 per cent of the salary of retained workers, up to a total of £2,500 a month, in an effort to encourage firms not to lay off workers.
In another change the government will now give interest-free loans for a year rather than 12 months under the Coronavirus Business Interruption Loan scheme.
“The scheme, open to any employer in the country, will cover the cost of wages backdated to 1 March and will be open before the end of April for at least three months. There’s no limit on the funding available for the scheme, we will pay to support as many jobs as needed.”
Self-assessment tax payments have also been deferred until January 2021. And the self-employed will be able to register for Universal Credit at a rate equivalent to Statutory Sick Pay for employees.