The COVID-19 outbreak has forced millions of shops and businesses to close as people are told to stay at home to help stop the spread of the virus. Rishi Sunak has introduced a number of economic initiatives in an effort to minimise the significant impact the virus has had on the UK economy and the public’s finances.
How do I claim 80 percent of my wages?
Whether you are employed by a business or self-employed there are ways to receive a pay package in the ongoing pandemic.
Up until Thursday, it was unclear how the self-employed were going to get paid.
Speaking at the daily briefing from 10 Downing Street, the Chancellor laid out his plans to help the UK’s freelancers and contractors.
Mr Sunak said: “The Government will pay self-employed people who have been adversely affected by the coronavirus a taxable grant worth 80 percent of their average monthly profits over the last three years, up to £2,500 a month.
“This scheme will be open for at least three months – and I will extend it for longer if necessary.
“You’ll be able to claim these grants and continue to do business.
“And we’re covering the same amount of income for a self-employed person as we are for furloughed employees, who also receive a grant worth 80 percent.”
The Chancellor reckons 95 percent of the self-employed will benefit from the scheme.
Under his plans, the self-employed people can access the business interruption loans and Universal Credit in full.
Mr Sunak deferred self-assessment income tax payments that were due in July until the end of January next year.
The Self-employment Income Support Scheme cannot be applied for yet, HMRC says it will contact those eligible for it and invite them to apply online.
Those in employment can claim 80 percent of their wages, up to £2,500 a month, through the Coronavirus Job Retention Scheme.
The bailout is open to all UK employer who will be able to access financial support to continue paying part of workers’ salaries who would have been laid off as a result of the coronavirus pandemic.
In order to claim, employees must be furloughed by their company.
An employee furlough is when bosses require their staff to take unpaid leaves of absence.
In other words, they’ll still technically be employed but won’t work or get paid by their firm.
Instead, the Government will pay you 80 percent of your wage, and it’s up to your boss if they want to pay you the remaining 20 percent.
Your employer will notify you of your change to furlough.
Changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation.
Businesses then submit information to HMRC about the workers that have been furloughed and their earnings through a new online portal.
The portal is not currently live – so employers will have to wait until then to submit.