COVID-19: Increase in Working Tax Credits and Updated Business Guidance
Our latest Turnerwarran COVID-19 Business Support blog covers the government announcement that the Working Tax Credits payments will be increased, and the updated government support for businesses as it happens.
Increase in Working Tax Credits
The government has announced that Working Tax Credits payments will be increased from 6 April 2020. As part of a number of new measures to support the country during the COVID-19 pandemic, the basic element of Working Tax Credit has been increased by £1,045 to £3,040 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 £20 each week.
The government is also uprating Child Benefit, other tax credits rates and thresholds, and Guardian’s Allowance by 1.7% with effect from 6 April 2020.
These increases came into effect on the 6 April, but individual payment dates will vary depending on circumstances.
You don’t have to take any action, and you will receive any increased payments automatically. A full list of tax credits, child benefit and Guardian’s allowance can be found on the gov.uk website:
Updated Guidance for Businesses
The Government announced yesterday the support they are implementing for nursery businesses that pay business rates in England.
The Government is introducing a business rates holiday for nurseries in England for the 2020 to 2021 tax year. Nurseries are eligible for the business rates holiday if:
- The business is based in England
Properties that will benefit from the relief will be:
- occupied by providers on Ofsted’s Early Years Register
- wholly or mainly used for the provision of the Early Years Foundation Stage
There is no immediate action required to access the scheme. However, local authorities may have to reissue the bill to provide this support. They will do this as soon as possible.
You can find out more on the gov.uk website:
Related Business Support:
- How to Claim Employees Wages in the Coronavirus Job Retention Scheme
- Coronavirus Business Interruption Loan Scheme (CBILS) Announced
- Business Rates Relief and Government Support Announced
- Government Relaxation of Financial Solvency Rules During COVID-19 Pandemic
- Coronavirus Job Retention Scheme: Your FAQs Answered