Posted on 06/04/2020 in Club News
We understand this is an unsettling time for coaches and staff members and we’re here to support you. Advice and support from the UK and Scottish Governments is developing daily and we will share useful links we think may help you. Below are several initiatives for which you might be eligible.
Self-employment Income Support Scheme Launched (SEISS)
A new grant has been announced to support the self-employed during this health crisis for the next three months (this may be extended if needed).
The government has announced that you will be able to make a claim for a taxable grant which will be 80% of the average profits from the three tax years 2016-2019 (pro rata where applicable, if you have not traded that long) or £2,500 per month whichever is the lower.
The grant will only be open to individuals who have trading profits of £50,000 or less in 2018-19 or average profits in 2016-17, 2017/18 and 2018/19 when all three years are reviewed.
The grant will be claimable through a gov.uk website and will be paid in one payment, it is anticipated that the first payments will be made in June. You cannot apply for this scheme yet. HMRC will contact you if you are eligible for the scheme and invite you to apply online.
This grant will be taxable and will be regarded as part of your trading income.
> Information and additional help for self-employed people
Self-assessment Income Tax – For Self-employed
Taxpayers under the self-assessment (SA) tax system would normally be due a tax payment on 31 July 2020. This has been suspended until 31 January 2021.
This is an automatic scheme and you simply do not have to pay these amounts until this date.
Furloughed staff – what you can do
If you have been furloughed by your club, your furlough letter and agreement issued to you by your club will outline what you can and cannot do during your period of furlough it will also make reference to payments, sickness and holidays. If you are not in receipt of these documents, then we recommend that you contact your club who can issue these to you. Each member club can receive support from HR specialists French Duncan who can assist with this documentation.
The Government issued further guidance and advice on Monday 6 April for those employees on furlough.
> Government guidance on furlough
While you’re on furlough
Once you are on furlough you will not be able to work for your employer. You can undertake training or volunteer subject to public health guidance, as long as you’re not:
• making money for your employer or a company linked or associated to your employer
• providing services to your employer or a company linked or associated to your employer
If workers are required to, for example, complete training courses whilst they are furloughed, then they must be paid at least their appropriate minimum wage (NLW, NMW or AMW) for the time spent training, even if this is more than the 80% of their wage that will be subsidised. Whilst furloughed, your employer cannot ask you to do work for another linked or associated company.
If your contract allows, you may undertake other employment while your current employer has placed you on furlough, and this will not affect the grant that they can claim under the scheme. You will need to be able to return to work for the employer who has placed you on furlough if they decide to stop furloughing you, and you must be able to undertake any training they require while on furlough. If you take on new employment, you should make sure you complete the starter checklist form with your new employer correctly. If you are furloughed from another employment, you should complete Statement C. Any activities undertaken while on furlough must be in line with the latest public health guidance during the COVID-19 outbreak.
Your employer can still make you redundant while you’re on furlough or afterwards. Your rights as an employee are not affected by being on furlough, including redundancy rights.
If your employer chooses to place you on furlough, you will need to remain on furlough for a minimum of three consecutive weeks. However, your employer can place you on furlough more than once, and one period can follow straight after an existing furlough period, while the scheme is open. The scheme will be open for at least three months.
Working Tax Credits
As part of several measures to support the country during the coronavirus (COVID-19) pandemic, Working Tax Credits payments will be increased by £20 per week from 6 April 2020 until 5 April 2021.
The amount a claimant or household will benefit from will depend on their circumstances, including their level of household income. But the increase could mean up to an extra £3,040 in the 2020 to 2021 tax year.
If you claim Working Tax Credits, you don’t have to take any action or contact HMRC - the increase in your payments will start from 6 April 2020.
Statutory Sick Pay & Universal Credit
Statutory Sick Pay (SSP) will be payable from day one instead of day four for affected individuals. People who are advised to self-isolate for COVID-19 can obtain an isolation note to cover this. Do not go to your GP.
Those who are not eligible for SSP, e.g. self-employed earning below the £118/week, can now make a claim for Universal Credit or Contributory Employment and Support Allowance.
The self-employed cannot claim SSP, however, you may be eligible for Universal Credits and/or Employments and Support Allowance. These may also apply if you are prevented from working because of a risk to public health.
HMRC Time To Pay Scheme
All UK business and self-employed people in financial distress with outstanding tax liabilities can apply to delay payments. The number to contact is 0800 0159 559. You will need your UTR and NI number to speak to a HMRC advisor.
Mortgage Repayment Support
If you are experiencing financial difficulties meeting your mortgage repayments because of COVID-19, you may be entitled to a mortgage or rental holiday for three months. This includes if you are a landlord whose tenants are experiencing financial difficulties because of COVID-19. If you are a tenant experiencing financial difficulties because of COVID-19, the government will ensure you do not face the threat of eviction for at least three months:
• the government has agreed with mortgage lenders that they will offer repayment holidays of three months to households in financial difficulty due to COVID-19
• this will also apply to landlords whose tenants are experiencing financial difficulties because of COVID-19
• the offer of a payment holiday can be made available to customers who are up to date with payments and not already in arrears
• customers who are concerned about their current financial situation should contact their lender at the earliest possible opportunity to discuss if this is a suitable option for them
• emergency legislation will be taken forward so that landlords will not be able to start proceedings to evict tenants for at least a three-month period. This applies to private and social renters
• at the end of this period, landlords and tenants will be expected to work together to establish an affordable repayment plan, taking into account tenants’ individual circumstances
Personal Loans and Credit Card Repayments
If you are experiencing difficulties paying back personal loans or credit card bills as a result of COVID-19, you should read the following information:
• the Financial Conduct Authority (FCA) called on lenders to use flexibility built into their rules to support consumers, taking into account customers’ individual circumstances. Many major lenders have already made statements to this effect
• if you are experiencing difficulties paying back loans or credit card bills because of COVID-19, you should talk to your lender
• if you agree a payment holiday with your lender, they should record these in such a way that will not impact on your credit score