• About
  • Solutions
    • Mango Umbrella
    • Mango PAYE
    • Mango Self Employed
  • Contractors
  • Agencies
  • Accountancy
  • News
  • Contact
  • Covid-19
  • Login
Coronavirus – Financial Help for Contractors
covid-19 virus
News

Coronavirus – Financial Help for Contractors

3rd April 2020

The Government has now announced several schemes designed to help businesses and self-employed people through the Coronavirus pandemic.

Here’s a summary of what’s been announced to date.

Self-employed contractors including Construction Industry Scheme


If you are a self-employed individual (you do not have a limited company) or a member of the Construction Industry Scheme, then you are likely to qualify for a grant under the Self-employment Income Support Scheme.

  • The scheme is open to those with average self-employed profits of £50k or less.
  • The grant will be equal to 80% of average profits up to a maximum of £2,500 per month.
  • HMRC will work out what you’re entitled to by looking at average profits in the last three years or a shorter period if those records are not available.
  • You must have filed your 2018/19 tax return to be eligible. If you still haven’t filed the return, the Government has extended the deadline to 23rd April 2020 – please get in touch for help.
  • HMRC will contact you if you are eligible and you will be able to apply online.
  • Payments would be made in June, backdated to March.

Limited company contractors (PSCs)

If you are a PSC/limited company contractor then you are considered an employee of your own company, so you will be able to access financial support through the Coronavirus Job Retention Scheme if your contract ceases or is put on hold.

  • The Scheme enables employers to make a claim to cover wages for employees on temporary leave (furlough) due to coronavirus.
  • If you are furloughed you can receive a grant to cover 80% of your regular wage or £2,500 per month, whichever is lower.
  • Ben Kerry, head of labour markets at HM Treasury stated in a CBI webinar “[PSC Directors] will have some statutory duties and obligations such as filling out their accounts, but they are still allowed to undertake their statutory duties while they are being furloughed. “So that would not count as doing work…[which is essential as] one of the key conditions of the furlough scheme is that the employee is not allowed to work for the employer.” Statutory duties are really limited so if as a director you are still talking to customers; you are still talking to clients customers or suppliers; if you are still marketing your business to keep your business going and you’re still posting on social media; unfortunately you won’t be able to claim”.For most PSC directors, the grant will be much lower if you’ve traditionally taken your income as a mixture of salary and dividend. The grant will be based on the salary part of your income, which is typically the tax-free allowance.
  • Some PSCs are seeking to work for other PSCs and have other PSC owners work for them so they can be furloughed on a higher salary/wage. We would recommend anyone to seek specialist advice before taking this path.
  • This issue has been featured widely in the press and the Government pressured to take action, though there are no indications yet as to whether the scheme will be altered.
  • There are several cash flow measures that you can utilise. For example, personal tax instalments due in July 2020 can be delayed until January 2021 and corporation tax can be paid over a longer period using the ‘time to pay’ scheme based on what you expect to be able to afford. In addition, VAT registered contractors can take advantage of newly-announced VAT ‘holidays’. If you have a VAT payment due between 20th March 2020 and 30th June 2020, you can defer the payment, though your VAT return should be submitted in the usual way.

Whilst the schemes are relatively generous for those who qualify, there are certainly gaps. We, along with other board members of the FCSA, are pressing Government for clarification on grants for Umbrella workers.

There is an expectation that umbrella workers, subject to certain conditions, may be able to receive a salary/wages via the Coronavirus Job Retention Scheme, though there is no clarity as yet about how this will work. We recognise the urgency of this matter and will provide updates as soon as we have them.

We are closely monitoring all Government announcements and will pass on relevant information as soon as it is available. If you wish to speak to a member of our team, our lines are open as usual from 9am to 5.30pm Monday to Wednesday and 8.30am to 5.30pm on Thursday and Friday. We are experiencing high call volumes at present, so please bear with us.

Professional Passport Accountancy Logo
Professional Passport Umbrella Logo
Professional Passport CIS Gross Status Logo
Professional Passport Joint Employment Logo
Bauer & Cottrell Logo
Free Agent Gold Partner Logo
APSCo Affiliate Logo
FCSA Accredited Member Logo
Prism Accredited Members Logo
Prism Logo
Cyber Essentials Logo
Team Service Provider Logo

Contact Us

For more information or to book a meeting to discuss further, please contact us on the details below:

  03300 580 190
  sales@mangopay.co.uk
  Contact form

Resources

  • Expenses Claim Form
  • Holiday Pay Request Form
  • Submit your Right to Work documents
  • Timesheet
  • Careers
  • Gender Pay Gap
  • Certificate of Employers Liability
  • Modern Slavery and Human Trafficking Statement
  • Privacy Policy

Links

  • LinkedIn

More Links

Copyright © 2021 · Mango Pay

Privacy & Cookies Policy

Christmas
Office Opening Hours

December

Monday 18th – Friday 22nd:  Normal office hours & payroll deadlines

Monday 25th:  CLOSED

Tuesday 26th:  CLOSED

Wednesday 27th:  9:30am – 16:30pm

  • Payroll deadline 1pm
  • Expenses deadline midday

Thursday 28th:  9:30am – 16:30pm

January

Monday 1st:  CLOSED

Tuesday 2nd:  Normal office hours

We all wish you a very happy Christmas and a prosperous 2018!

Mangopay uses cookies to collect information about how people use our website, which we use to improve the site’s functionality and our services. Please click 'I accept' to consent to the use of this technology by Mangopay. You can find out more about our use of cookies in our privacy policy.I AcceptRejectPrivacy Policy
You can revoke your consent any time using the Revoke consent button.Privacy & Cookies Policy