New Chancellor, Sunak, has announced exceptional measures to support businesses and individuals who might suffer due to coronavirus outbreak in his first Budget a day ago.
Undoubtedly, this was a coronavirus Budget, but it was also a post-Brexit Budget. He promised this Budget would help hard-working families keep more of their money. However, these measures are still temporary.
What did Sunak Say to fight coronavirus?
We are doing everything we can to keep this country and our people healthy and financially secure,” he told MPs.
“A fifth of the workforce could be off sick at any one time [with coronavirus] … but life will return to normal,” said Sunak yesterday. “If people fall ill or can’t work, we must support their finances.”
Rishi Sunak highlighted coronavirus as the key but not the only challenge in his first budget. He presented a series of temporary timely and targeted measures for individuals who fall ill.
See also https://care4properties.co.uk/
Changes to SSP rules after covid-19:
He declared changes to that previously announced rules, which mean that statutory sick pay (SSP) will be paid from day one of illness instead of day four.
Further, Sunak announced that this would also be available to all those needs to self-isolate them even if they had not yet presented with symptoms of coronavirus.
Moreover, employers will keep the record of absent staff members. Hence, employees will not need to provide a doctor’s note.
There will also be no need to go to the doctors for a sick note, which will be made available by the NHS 111 service.
Who is eligible for SSP refund?
Sunak said: ‘Not everyone will be eligible, for instance, those who are a freelancer or in the gig economy, and they need our help too. During this period we will offer quicker and easier access to benefits.’
This includes allowing those on contributory employment support allowance to claim from day one instead of day eight for time off work due to coronavirus.
The government will temporarily remove the minimum income floor for universal credit.
Also, they don’t need to physically attend a jobcentre, as all applications will be handled by phone or online.
A boost of half a billion pounds to the welfare system:
The ESA and UC announcements would provide a boost of almost half a billion pounds to the welfare system.
He also announced a £500m hardship fund for local authorities to support vulnerable people in their local area.
Businesses will have the costs of staff having to take time off work refunded for up to 14 days. And £2bn will be allocated to cover firms that lose out because staff are off sick.
He said this will apply to firms that employ fewer than 250 staff.
Expectations from HMRC:
Besides, HMRC may scale up its Time To Pay service in light of the impact of coronavirus on business activity.
Government has set up an exclusive helpline for small businesses and the freelancer struggling to pay their tax bills.
Visit also https://careaccountancy.co.uk/tax-news-in-uk/ for details about current tax affairs.