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To ask the Chancellor of the Exchequer, what plans he has to provide financial support to businesses and households whose incomes will be adversely affected by restrictions in place as a result of covid-19.
To ask the Chancellor of the Exchequer, whether he has plans to exempt businesses from paying (a) national insurance, (b) VAT, (c) corporation tax and (d) business rates over the next three months.
The Government has announced an unprecedented package of support for businesses and individuals affected by Covid-19, and remains committed to doing whatever it takes to support the economy as necessary.
UK VAT registered businesses, including charities, can defer VAT payments due with their VAT returns between now and the end of June. No UK VAT registered business will have to make a VAT payment alongside their VAT return to HMRC in that period. They will have until the end of the financial year to repay.
The Government will also give all eligible retail, hospitality and leisure businesses in England a 100% business rates holiday for the next 12 months. The Government also extended the support available to individuals and businesses, including a package of government-backed and guaranteed loans, which make available an initial £330 billion of guarantees – equivalent to 15% of GDP.
For Income Tax Self-Assessment, payments due on the 31st of July 2020 will be deferred until the 31st of January 2021.
Under the Coronavirus Job Retention Scheme, employers (including charities) can put workers on temporary leave and the government will pay them cash grants of 80% of their wages up to a cap of £2,500 a month, providing they keep the worker employed. They will receive the grant from HMRC, covering the cost of wages backdated to 1 March 2020.
Statutory Sick Pay (SSP) will be available for those unable to work because they are self-isolating in line with government advice; this is on top of the Prime Minister’s announcement that SSP will be payable from day 1 instead of day 4 for affected individuals. Support will be available through Universal Credit and Contributory Employment and Support Allowance for those not eligible for SSP.
HMRC have scaled up their Time to Pay offer to all taxpayers, including charities, who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities. Taxpayers can contact HMRC’s dedicated Covid-19 helpline to get practical help and advice on 0800 0159 559.
The Chancellor will continue to review and make further announcements as events unfold if required.