7 days ago by Mike Pye

Prepare Yourself - Everything is Changing

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​With the world in a state of flux, it’s hard to feel on top of the latest advice and regulations. So, we thought we’d make it easy for you by bringing together some useful resources to help you address your most pressing concerns.

This article will outline some of the key changes that you should be aware of and where to find more information and support.

Changes to IR35

Last week, the Treasury confirmed that they would postpone IR35 due to the COVID-19 outbreak creating business uncertainty.

This means that businesses now have until April 2021 to address the reforms necessary which will drive major change in the contracting industry.

What is IR35?

IR35 is designed to combat tax avoidance by “disguised employees”. Under new rules, every medium and large private sector business in the UK will become liable for setting the tax status of any employee that they hire – including contract and temporary workers.

The new rules will apply to businesses with either:

  • 50+ employees

  • Turnover of more than £10.2m / annum

With recent events spurring many companies to review their policies and contracts, now is a great time to address IR35 so that you’re prepared when the changes come in next April.

Useful Resources

IR35: An Overview

Understanding off-payroll working (IR35)

Coronavirus Job Retention Scheme

HMRC have announced that they will reimburse 80% of furloughed workers’ wage costs up to a cap of £2,500/pm as part of their plan to support businesses during the outbreak.

Who counts as a furloughed worker?

A furloughed worker is someone who is still employed but not working. The purpose of this scheme is to help businesses to continue paying employees that would have otherwise been laid off.

Useful Resources

A breakdown of the government support available for businesses

How to access the scheme

Mortgage Holidays

Typically, your largest financial outgoing will be your monthly mortgage payment. Therefore, taking a break from your mortgage – with a mortgage holiday of up to three months – can act as welcome financial relief.

Am I Eligible?

Whether you are eligible to take a payment holiday, for how long, and the conditions you must meet depends on:

  • Your lender

  • Your mortgage contract

  • Your financial circumstance

It is best to contact your bank directly to discuss a mortgage payment holiday with them.

Useful Resources

Pros and Cons of a Mortgage Holiday

Mortgages and Coronavirus: Information for Consumers by FCA

Don’t be afraid to claim SSP

If you’re self-isolating because of COVID-19, you can get Statutory Sick Pay (SSP) of £94.25 per week.

When can I claim SSP?

New legislation has been brought forward to give you access to SSP from the first day you’re self-isolating and cannot work. This came into play on 13.03.20 and overrides the previous 4-day caveat.

Useful Resources

When should I self-isolate?

How to claim SSP

Deferring VAT and Income Tax Payments

The government have announced that they will support businesses by deferring tax payments, as outlined below.

Deferred Deadlines:

  • If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021

  • For VAT, the deferral will apply from 20 March 2020 until 30 June 2020

All UK businesses and self-employed individuals are eligible. There is no application required.

Useful Resources

Relieve temporary financial distress with HMRC Time to Pay Offer

A breakdown of the government support available for businesses

General Advice:

Government Advice

If you’re unsure how you should be responding to the COVID-19 outbreak, please refer to GOV.UK platform here.

There is further guidance for employees, employers and businesses here.

 

Mental Health

It is well recognised that isolation and the stress of the outbreak may be triggering for many, leading to a decline in mental health.

Discover how you should be looking after your mental health during the Coronavirus outbreak here.

The mental health charity, MIND, have also released some support and resources to help you during this time. You can access this here.

 

Working from Home

As the Coronavirus forces many of us to work from home, now may be a great time to refine your strategy for effective working.

Discover some tips for creating a positive environment to work from here.

You can also check out some top tips for working from home here.

 

What Next?

If your job has been affected by COVID-19 or you are looking for a new role, please contact uson 0161 359 3789 (Manchester), 0207 871 7655 (London), or by emailing hello@weareadam.com.

 

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