The recent outbreak of the coronavirus has changed the day-to-day routines of almost everyone, affecting individuals, businesses and industries across the country. As part of this, the coronavirus pandemic has stymied the world economy and has created an uncertain time for everyone who is looking to safeguard their livelihoods, investments and financial futures.
As of 6th March 2020, the Chancellor Rishi Sunak has announced special measures that the government are putting into place to support the UK economy, in addition to the Budget. The running figure now totals over £60 billion, with a further £330 billion of loan guarantees for businesses across the country. The actions put into place to support those across the country include:
- A subsidy to employers of 80% of furloughed workers’ wage costs, up to a cap of £2,500 per month. This has been put into place to prevent employees losing their jobs and is to encourage the retention of workforces across the country.
- Extension of the interest-free business loan scheme to 12 months, making it easier for businesses to gain access to the money they need to keep them afloat during this difficult period.
- Waiving 2020/21 business rates for all businesses in the retail, leisure and hospitality sectors.
- Providing grants of up to £25,000 for businesses that qualify for the Business Rates Retail Discount.
- Delaying (IR35) which is the introduction of private sector off-payroll working rules for a year. This will now begin in April 2021.
- Deferring the next quarterly VAT instalment to the end of the financial year.
- Delaying self-employed people’s self-assessment payment, which usually takes place in July, until January 2021.
The pandemic has had a wide-ranging effect on all parts of the UK economy, from air-travel to pubs. The government and regulators, however, have made sure that the banks are in a much stronger financial position than the 2008 financial crisis.
If there is a lesson to learn from 2008, it is that markets can overreact and, although it seems impossible at the time, economies do recover. For now, the focus is on people, their lives and livelihoods.
If you are worried about your finances, seeking advice on your next financial move is a constructive step. Here at KLO Financial Services, we are committed to supporting you and your financial needs. Our experts are here are to provide personal financial management solutions, tailored for you. For more information, email us at email@example.com.