Coronavirus Relief If You Are Employed In The UK

For many people coronavirus has had a huge financial impact and this guide helps to explain the reliefs available while we deal with the pandemic.

1 - Coronavirus Job Retention Scheme

The aim of the scheme is to allow employers to keep their employees during this difficult time with financial support from the government.

If your employer is unable to operate, or there is no work for you (known as being on furlough) - both you and your employer can agree that you will be treated as a furloughed employee. In this case, furloughed workers will receive 80% of your normal wages up to £2,500 per month.

The funds will come from your employer and taxes will still be deducted - the payments are treated as income.

The Coronavirus Job Retention Scheme will cover the cost of your salary backdated to March 1st and covers March, April and May 2020, but will be extended if required.

Your employer can pay you more than the grant, but they do not have to unless there is a provision in your contract.

2 - Deferral of Self-Assessment Payment

If you file a tax return, and you are due to make a self-assessment payment on account in July 2020, that payment is now deferred to 31 January 2021.

The deferral is automatic - you do not need to make a claim and there is no interest or penalties by paying up to January 2021.

3 - Time to Pay Tax Due

If you have any tax due to HMRC, you can contact HMRC and use their Time to Pay service.

If you owe under £10,000 you may be able to arrange a payment plan online.

You can use the webchat service by clicking here.

Alternatively you can contact HMRC's Covid-19 helpline - 0800 024 1222 (open Monday to Friday, 8am to 4pm)

4 - Help With Mortgages

In March 2020, all UK banks agreed to offer a 3 month payment holiday if you have been experiencing financial difficultly due to coronavirus.

The mortgage payment holidays do need to be applied for and interest will still be applied to the mortgage during the holiday period.

Payment holidays will also be available to buy-to-let landlords, where tenants have lost income because of Covid-19. The government has made it clear that landlords are expected to pass on this relief to their tenants to ensure that they are supported during this time.

5 - Protection for Renters

From March 2020, landlords are required to provide 3 months notice to all renters (in private rented and social housing) if they intend to take back possession of the property.

The landlord can not start legal proceedings until after this 3 month period has elapsed and the government may extend this period if needed.

If you have an ongoing housing possession action, that should now be suspended by the courts.

Renters are still liable for the rent during this period - if you are unable then the government asks that you show that you have made attempts to agree a payment plan with your landlord.

During this period landlords must ensure properties are kept at the required standard and all essential repairs are made.

6 - Loans and Credit Cards

Many lenders will provide assistance during the pandemic through loans and credit cards payment holidays.

Each lender offers different help and you should contact your bank to check what is available.

Help includes waiving missed payment fees, offering reduced payments, payment holidays and emergency credit limit increases.

7 - Helping With Overdrafts

Each provider will offer different help with overdraft interest and payments.

If you do need financial help, you can contact the bank and see if they offer interest holidays, a reduction in the interest or temporary extension of the overdraft to help during this period.

8 - Council Tax Payment Holiday

Many councils are now offering payment holidays for your council tax.

If taking a payment holiday would assist in your current situation, if you contact your council and see what they are offering.

The council tax will still need to be paid, the holiday will just defer the payments - so those payments are likely to be larger once they resume.

9 - Utilities and Other Household Bills

With energy and water bills - the companies are working with the government to ensure that services remain working.

Disconnections of standard meters are not allowed during the pandemic and the suppliers will work with you on payment plans and evening pausing payments if required.

If you do need help to cover your household bills, if you contact the supplier and they have been instructed by the government that they need to work with you to find a solution.

10 - Universal Credit

If you have been impacted financially by Covid-19, you can check if you are eligible for Universal Credit from the government.

You can make a claim online, there is no need to attend a claim centre.

11 - Sick Pay

If you can't work because you have symptoms of coronavirus, or you are caring for someone with coronavirus, you can claim statutory sick pay - it's paid by your employer for up to 28 weeks.

To check your entitlement, you can check your employment contract, contact your employer and find more details from the government here.

Summary

These measures cover the next 3 months and it is likely that further measures will be provided. The government has a dedicated page for support for those affected by coronavirus here.