What to do if you’re employed and cannot work – guidance for employees

The Department for Work and Pensions has updated its guidance for employees if they are employed and cannot work.

In addition to the Furlough scheme it details that employees might also be able to get:

• New Style Jobseeker’s Allowance (JSA) if you’re under State Pension age, you usually work less than 16 hours a week and have made enough National Insurance contributions over the last 2 to 3 years.
• Universal Credit if you or your partner are under State Pension age and you have less than £16,000 in savings – you might be able to get it at the same time as New Style JSA.
• Pension Credit if both you and your partner have reached State Pension age.

See: https://www.gov.uk/guidance/coronavirus-covid-19-what-to-do-if-youre-employed-and-cannot-work

Read our Fact Sheet on Universal Credit

With many individuals falling into Universal Credit and the world of State Benefits (as a result of the COVID-19 Pandemic), we thought it would be useful to write a fact sheet on Universal Credit for our clients. 

You can download our fact sheet here: https://www.hillmans.co.uk/universal-credit

We hope you find the information useful.

Full information on Universal Credit can be found at: http://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/how-much-youll-get/

HMRC issue updated guidance for the Self-employment Income Support Scheme

HMRC have issued further guidance in relation to the grant support scheme for the self-employed. 

The key updates include:

• HMRC are aiming to contact self-employed individuals in mid-May, inviting them to make an application.  Payments are expected to be made in June.
• Applicants will need to confirm to HMRC that their business has been adversely affected by coronavirus. HMRC have stated they will “as usual use a risk based approach to compliance”. 
• HMRC have now confirmed how ‘trading profit’ is defined for the purposes of the scheme.
• HMRC have clarified the definition of ‘total income’. A condition of the scheme is that the trading profits are more than 50% of the person’s total income. 
• HMRC have confirmed that individuals may also make an application for Universal Credit at the same time as making a claim under the grant support scheme. It is important to note that the support received under the scheme must be declared for the purposes of Universal Credit.
• Amendments made to personal tax returns after 26 March 2020 will be ignored for the purposes of establishing an individual’s eligibility.

You can read the full details on the HMRC website here: https://www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme