Covid-19 has affected every aspect of our lives and it’s perhaps most obvious when it comes to work.
Between the Coronavirus Job Retention Scheme (also referred to as ‘furlough’, find Brodies’ full guide to the scheme here), help for self-employed people and business owners, there’s a lot to delve into.
The employment experts at Brodies have answered readers’ questions about employment and running a business during Covid-19.
(Please note, the information below is current as of April 21, 2020; Government guidance is changing regularly. Readers should consult the latest version of the Government guidance before taking any decisions.)
My father is 70 years old, can he be paid furlough wages while receiving state pension at the same time? And secondly, can the company legally send him his P45 at the end of this financial year after eight years of employment?
An individual can be furloughed at the same time as receiving the state pension.
In answer to the second issue, a P45 is given to an employee when they stop working for their employer. As the employment contract continues during furlough, a P45 should not be issued when someone is furloughed.
My wife and I run a haulage business; we are a limited company with no employees and we have not had a job since 31st March. Do we qualify for the furloughed scheme and if so, how do we apply?
The Coronavirus Job Retention Scheme can be used by office holders and company directors of limited companies if they are paid via PAYE (and meet the other conditions of the scheme).
There are a number of different support options for businesses available – full details of which can be found here.
I am a self-employed artist and my income has gone down to zero since the outbreak, and will sadly remain so for the foreseeable future. I am aware that the government has put in place a grant for all self-employed people but have found it impossible to apply for one. Would you know the correct procedure for me to make my application for support?
The Government has introduced the Self Employed Income Support Scheme, but at the time of writing it isn’t fully operational.
We understand that HMRC is aiming to contact eligible individuals by mid May 2020 and will invite them to claim using the online service, once the system is up and running.
Could you give me some advice as to who is covered by getting a grant from the government because of coronavirus? I have worked for the same company for the last eight years as a personal service company HGV driver. My income tax is all up to date.
The Coronavirus Job Retention Scheme can be used by office holders and company directors if they are paid via PAYE (and meet the other conditions of the scheme).
If an individual receives a salary as a director or employee of their own personal service company, they can be furloughed. The Government has been asked to consider the position of PSCs where a large portion of the company’s profit may be paid by way of dividend but at present, income by way of dividend is not covered by the scheme.
I own a small business which I have closed to comply with the government’s regulations. I also have a full time job which is my main income. Am I able to claim anything to help with the loss of income from my business?
Various business support measures have been made available to UK businesses. If the income from the business is by way of a salary then the Job Retention Scheme can be used if other conditions are met. If the income is taken by dividend, that is not currently covered.
In addition to the Self Employed Income Support Scheme, the Government has also announced additional help for those who are self-employed including deferral of Self Assessment Income Tax and VAT payments; grants for businesses that pay little or no business rates; and the Business Interruption Loan Scheme. Full details of the different support options can be found here.