The Chancellor announced on 17th March & updated on 20th March with Round-2 a massive business support package (equal to 15% of GDP) aimed at propping up UK businesses, including:
But there are already many questions (see below) on how the Business Interruption Loan Scheme will work. We have also discussed some of the key issues in our article on Coronavirus Business Support Package- Key lessons to be learned from the 2008 EFG:
And the big question- IS IT GOING TO BE ENOUGH?
The Chancellor said that the Government will do whatever it takes to support business, hinting that more measures are in the pipeline- potentially.
But those who appear to have been left out of the Government's life-support are those self-employed and in the gig economy.
They represent a major part of the workforce and are, arguably, also amongst the most vulnerable to the nationwide enforced business shut--down that is happening due to the social distancing measures that were introduced by the Prime Minister yesterday.
How will they be supported?
The Government will need to address this vital part of the economy sooner rather than later, along with delivering at pace the initial £330 of support just announced.
HMRC's Response to Coronavirus:
The HMRC has stepped into the fray by setting up a Help Line to "support businesses and self-employed people concerned about not being able to pay their tax due to Coronavirus (COVID-19)."
An instalment arrangement might be organised if cash is short: "HMRC may offer you extra time to pay if they think you genuinely cannot pay in full now but will be able to pay in the future. You can set up a plan to pay in instalments by Direct Debit on dates they agree with you."
But HMRC also says that "you’ll have to pay immediately if HMRC think you can when you call."
By the publications team at: Contracts-Direct.com
Publisher: Atkins-Shield Ltd: Company No. 11638521
Registered Office: 71-75, Shelton Street, Covent Garden, London, WC2H 9JQ
Note: This publication does not necessarily deal with every important topic nor cover every aspect of the topics with which it deals. It is not designed to provide legal or other advice. The information contained in this document is intended to be for informational purposes and general interest only.
E&OE
Atkins-Shield Ltd © 2020