The crisis caused by the COVID-19 pandemic is forcing countries to enter into motion all kinds of initiatives to combat the human and economic consequences. In the specific case of the United Kingdom, as has happened throughout Europe, its response has been evolving as the number of people affected have increased, its management of this situation is slightly different from others countries.
For instance, the measures adopted regarding restriction of movement, which have been progressing in line with the growth of the Coronavirus cases in recent weeks. This has not prevented the government ruled by Prime Minister Boris Johnson to act in terms of tax compliance and labour matters, as well as specific actions to support individuals, public services and companies during this period.
Among the updates applied in the last few weeks we can mention some such as support to companies through the ‘Coronavirus Job Retention Scheme’, as one of the most outstanding. Under this plan, all employers in the UK will be able to access support to continue paying part of their employees’ salaries in those cases that otherwise would have been dismissed during this crisis. This measure applies to all companies in the UK.
In addition, the UK government has pushed for measures such as deferral of VAT and income tax payments. In this regard, VAT payments were deferred for three months.
Other noteworthy initiatives promoted in the United Kingdom to alleviate the economic and social impact of this pandemic also include
- Support for companies that are paying out sick pay to employees. Small and medium-sized enterprises and employers are allowed to claim statutory sick pay (SSP) paid for employees sickness absence due to Covid-19.
- Coronavirus Business Interruption Loan Scheme, provided by the British Business Bank, to assist mainly small and medium enterprises in accessing bank loans and overdrafts.
- Financial assistance measures for larger companies through the purchase of short-term debt that allows for the reduction of financing and deferment of outstanding tax debts for companies and self-employed persons in difficulty.
The Coronavirus crisis is causing businesses to face huge challenges and, in this context, reliable and up-to-date information is essential. At AUXADI, we are experts in providing accounts, tax compliance and international payroll management to our clients. If you would like us to expand on the above information, please do not hesitate in getting in touch with us.