For those in need of assistance during the pandemic, as the UK enters another lockdown, it is important to know what help is available out there for workers who have seen their earnings hit in 2020. We decided to do a new update on what is on offer. Here is the available government assistance during the pandemic.
Government Assistance During The Pandemic – Furlough Schemes
The furlough scheme that has assisted millions in the past six months and more has thankfully been extended as the government tighten restrictions once more This means the government pays wages for those unable to work who are still in employment. It was due to end on 31 Oct, but the government extended it on Saturday until 2nd December. Hopefully at some point they will extend beyond that date, as people will need it to be. It will remain at 80% of wages up to £2,500 per month for unworked normal hours but the scheme permits part-time work. If you have recently been made unemployed, you may be able to be re-employed so that your employer can utilise the scheme. Many will have lost their jobs recently on the understanding from their employers the furlough scheme was about to end.
Self Employment Scheme Revised Once More
The self employed income support scheme (SEISS) has been a huge help to many who work for themselves this year, though it has also excluded millions who have fallen down the gaps not covered by the scheme. Anyway, the third instalment of the grant is soon available for those eligible to apply for. Its terms have changed repeatedly as the cases of coronavirus have increased. So originally the announcement by the statement said the grant would be 20% of average profits for workers for the months November, December and January. The subsequent three months will also attract a grant, but the government will announce the details of that at a later date. It will no doubt mirror the circumstances of the time. Since the initial announcement, the details have been altered twice.
Current Situation
So the 20% was initially doubled to 40%, and finally last week Rishi Sunak raised the first month of grants (for November therefore) to 80%. That applies for that month only. So the chancellor noted that the average for the three months of profits. Strictly speaking it is 55.33%! The maximum you may claim is £5,160
Government Assistance During The Pandemic – Payment Holidays
Mortgage providers and some credit card providers too will once more offer payment holidays for those struggling to make their payments. However, as before, only take these holidays if there is no other option. I advise this because interest will continue to accrue on debts during the holiday. This, once the holiday ends, your debt will have increased. Holidays on mortgages should be offered for up to 6 months.
Tax Relief For Home Workers
If you are working at home for the first time, you can claim tax relief for a whole year from HMRC. If you are self-employed, you would make this claim during your annual self-assessment tax return.
Government Assistance During The Pandemic – Renter Evictions
Many landlords with mortgages should be able to get a mortgage payment holiday if their tenants are struggling to pay. If your landlord wants to evict you now, you must usually be given six months’ notice . If you’ve already been served notice, and the landlord’s got a court eviction notice, while there’s no hard rule, it’s likely the Govt will ask bailiffs not to evict people during lockdown from 5th November, as is the situation in Wales.
Bounce Back Loans
If as a business owner you have used a bounce back loan in the past, but did not take out the full amount you were entitled to, then there is help available. As of next week, you can get a top-up loan to take you to the full amount allowed.
