Coronavirus – Business Update Number 2

The Grants and information on my last blog are still relevant. I know many employers are struggling with dealing with the practicalities of running the payroll for furloughed staff. It is still not clear exactly how we deal with that but more information is coming forward from payroll software providers and our Institute of Chartered Accountants. At the moment we can just do our best to work through it and get it as accurate as possible.

No grants are actually making their way to your bank account this month, it is likely to be April as I have said all along, which is probably why there is the Coronavirus Business Interruption Loan to assist short term.

The main reason for this update is to inform my self employed clients of possible changes to their position. An amendment was made to the Coronavirus Bill put before Parliament on Monday 23 March 2020. The proposed amendment initially used a figure of £2,917. I believe it may now have been amended to £2,500 looking at yesterday’s House of Lords Bill.

It proposes payments to self-employed or freelancers which will be set so that their gross monthly earnings will not fall below:-

  • 80% of their monthly gross earnings, averaged over the last three years or
  • £2,500

whichever is the lowest. So no payment will be more than £2,500 per month.

If your records do not go back 3 years then we use the monthly net earnings averaged over the time for which records are available.

Hopefully that will help and may be announced tonight 25th March. We shall then know whether the limit is £2,917 or £2,500 or whether it has changed again. Whatever it is, it will be more than what has been on offer to date.