£330bn in loans will be made available from next week to help ease the financial burden caused by the coronavirus and aid businesses in paying for supplies, rent and salaries. The chancellor stated that he would be extending the business rates holiday to all firms in the hospitality sector and funding grants of between £10,000 and £25,000 for small businesses.
Other measures announced include a three-month mortgage payment holiday for people in financial difficulty as a consequence of the virus. A mortgage payment holiday is an agreement made with your mortgage lender which allows you to temporarily to stop your monthly mortgage repayments. A number of lenders had already announced repayment holidays for those affected by the virus, but yesterday’s announcement means all lenders will now have to honour the three-month time frame. It is important to note that borrowers will have to make up these payments at a later date.
It has also been announced that IR35 tax reforms will be pushed back by one year. The changes, which aim to combat tax avoidance by targeting contractors for companies who are, in practice, providing the same service as employees, will now come into effect on 6th April 2021.
The situation is ongoing. As of yet, nothing has mentioned about any measures to help self-employed and freelance workers, many of whom already don’t have the same financial security as those working for companies. There is also pressure on the government to provide protection of some kind for renters affected by coronavirus. We will continue to monitor the situation and keep you informed.