Chancellor Rishi Sunak has announced an extraordinary Coronavirus wage bailout fund to support UK workers hit by Coronavirus crisis. The government will pay up to 80%, or £2,500, of the salaries of British workers affected by Covid-19 in a major wage bailout.
Mr Sunak stated in a speech:
“Employers will be able to contact HMRC for a grant to cover most of the wages for people who are not working but kept on payroll rather than being laid off.
That means workers in any part of the UK can retain their job even if their employer cannot afford to retain them.”
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Who can apply for a wage bailout fund?
Any British business, no matter what size, can apply for a wage bailout if it is struggling as a result of the Coronavirus crisis.
In addition, the chancellor added he would extend that timescale if necessary. There will be “no limit” on how much money the government will make available for the scheme.
“We have never had a scheme like this in our country before and we are having to build our systems from scratch,”
However, HMRC is working to ensure the first grants are available within weeks, Sunak added. Businesses can apply for relief from Monday.
The chancellor repeated his call for firms affected by the UK coronavirus outbreak not to make people redundant in return for the huge wage bailout.
“The economic intervention we are announcing today is unprecedented in the history of the British state,” he added.
I know that people are worried about losing their jobs.
About not being able to pay the rent or the mortgage.
About not having enough set by for food and bills.
I know that some people in the last few days have already lost their jobs.
“To all those at home right now anxious bout the days ahead – you will not face this alone. But getting through this will require a collective national effort with a role for everyone to play. It’s on all of us.”
Government defers all VAT payments for UK businesses due to Covid-19:
Sunak also said he would postpone companies’ VAT payments until June, in business relief worth over £30bn. The chancellor said that was equivalent to 1.5 per cent of GDP.
“I know it’s incredibly difficult out there. We in government are doing everything we can to support you. We are deferring over £30bn taxes to the end of the financial year,” he said.
See also VAT ADVICE AND COMPLIANCE
These are unprecedented and challenging times for businesses. The government is trying its best in supporting businesses affected by Coronavirus. Covid-19 wage bailout scheme will definitely help people facing a financial crisis.
However, the Chancellor is now under pressure to give more support to self-employed workers who are out of wage bailout scheme.
Visit also https://careaccountancy.co.uk/tax-news-in-uk/ for details about current tax affairs.