Help with money during Covid-19 from Logbook Loans
How Logbook Loans can help you through the crisis…
Life as we know it has changed so much over the last few weeks. All of us at Logbook Loans hope that you and your family are well and are managing to navigate your way through the new unfamiliar landscape of life in the UK.
But not only is the pandemic affecting the health and daily lives of our nation, for many of us it is also having a major impact on our finances.
You may be particularly worried if you are:
- employed but not currently needed at work;
- self-employed but can’t open your business during lockdown;
- not able to work because you are ill or self-isolating.
If this is you, then what do you do for money?!
Here’s a quick overview of where you might be able to get help with money during Covid-19 in all these circumstances.
If you are employed but not currently needed at work
If your company is continuing to operate and/or will re-open after lockdown, you may be in the situation where you still have a job but they don’t actually need you to work at the moment. In this case your employer can put you “on furlough”.
Being on furlough means that the company still employs you – and you are on their payroll – but they do not currently have any work for you to do, either at your place of work, or from home.
You will need to agree with your employer to be put on furlough, and they can then apply to the government to reimburse them 80% of your salary (up to a maximum of £2500 a month). Your employer will then pay you this money, and can also choose whether to top up the amount to your normal full pay.
You will still continue to pay income tax and national insurance contributions while on furlough.
You may also be allowed to do temporary work for other employers whilst on furlough (but check with your employer first). So for example you may be able to find work that you can do from home to make up the difference in your pay whilst on furlough.
If you are self-employed but can’t open your business during lockdown
If you are self-employed and can’t operate your business during Covid-19, you may be able to get help from the Self-Employment Income Support Scheme.
This scheme is available to people who have been self-employed since before April 2019, plan to continue being self-employed, and it is their main source of income.
HMRC will check whether you are eligible for the scheme and will then invite you to apply for a grant. This will be for up to 80% of your trading profits (up to a maximum of £2,500 per month) for 3 months. The exact amount of your grant will be based on your average profits from your last three tax returns. Grants are expected to be paid by the beginning of June.
If you are not eligible for the Self-Employment Income Support Scheme, you may be able to claim Universal Credit.
If you are not able to work because you are ill or self-isolating
If you are employed, still working through lockdown and become ill, you need to speak to your employer as soon as possible. Your position is exactly the same as in normal times. So you are entitled at least to Statutory Sick Pay (SSP). This is £95.85 per week and is paid for up to 28 weeks. Some companies run their own sick pay scheme, which has to be at least as much as SSP.
If you are employed but on furlough, and become ill. you are still entitled to at least SSP. Speak to your employer about whether they want to do this or keep you on your furloughed salary.
The above also applies if you are self-isolating because you or someone in your household has COVID-19 symptoms.
SSP does not apply to the self-employed. If you either become ill with COVID-19 or are advised to self-isolate, you may be able to claim Universal Credit and/or New Style Employment and Support Allowance.
But I need money now!
Even if money will soon be on its way from one of the above routes, you may find yourself running out of money and needing a short term solution. In this case you may want to consider a short term loan, just to tide you over the next few weeks.
If so, then take a look at the loans available from our parent company Loans2Go. You can apply easily online and, if your application is approved, could have the money in as little as 15 minutes.
We hope that the above information helps you to survive the current financial situation.
Check back here soon for more financial and lifestyle tips from Logbook Loans.