The UK government has rolled out several extraordinary measures to help cope with the current crisis. Although the programmes can be really helpful, navigating them is hard. Here we cover the support programmes that are most likely to apply to estate agents.
The programmes can be split based on your specific situation:
· Agents who have lost their jobs
· Agents on temporary furlough
· Independent and self-employed agents
At the bottom there are links to the detail of each programme so you can check eligibility, the amounts involved, and any further detail which may interest you.
Agents who have lost their jobs
To the extent possible, it is worth checking with your previous employer whether they can put you on furlough or apply for a grant under the Coronavirus Job Retention Scheme instead (see the furlough section below). If this is not possible, the following may be helpful.
· Universal Credit (UC): UC is a payment the government makes to help those out of a job and is generally paid monthly. UC works on an eligibility basis and generally applies to people aged between 18 and the state pension age, and who have less than £16,000 in savings between them and their partner. On average, if you’re in a couple, are both 25 or over, and have 1 child, you can expect to receive approximately £875 per month for the both of you.
· New Style Jobseeker’s Allowance (JSA): this can be received together with, or instead of, Universal Credit. To be eligible, you normally need to have paid or been credited with a certain amount of National Insurance contributions over the last 2 years. Unlike Universal Credit, the JSA is paid every 14 days instead of monthly and does not take into account your, or your partner’s, savings and capital.
Agents on temporary furlough
A furlough is a temporary layoff from work. There is a Coronavirus Job Retention Scheme in place which helps impacted businesses pay a portion of the furloughed workers’ wages. This scheme can help employers cover 80% of monthly wage costs, up to £2,500 per month. To understand whether you may be eligible, your employer should check the CJRS home page. In general, a business is likely to be eligible if they have started a PAYE payroll scheme before the 19th of March 2020, are registered online, and have a UK bank account. The programme is flexible and businesses can claim for largely any type of employment contract.
Independent and self-employed agents
This section applies mainly to agents who work on their own account and are not part of a larger agency. It may also apply if you’re working as part of a partnership. The options are the below:
· Self-Employment Income Support Scheme (SEISS): this scheme is not yet up and running online and is scheduled to be available by mid-May. It resembles the CJRS described immediately above. The programme allows you to claim a grant worth 80% of your trading profits up to £2,500/month for an initial period of 3 months. The grant is subject to tax and NI contributions, but does not need to be repaid.
· Universal Credit: ahead of the SEISS launching, you can also claim for UC. In this case, the UC works largely as described in the section for agents who have lost their job.
Summary
The government has launched several helpful programmes for people and businesses affected by the virus. The schemes we describe above are those we think are most likely to be of relevance for estate agents, but do not cover all possible routes. Other factors like age or whether you have a health condition will also impact your options. If you have a non-standard situation, or in general are struggling to identify what programme is right for you, please don’t hesitate to reach out at hello@scraye.com and we’ll do our best to help as quickly as possible.
Links
For more information and how to apply, please use the links below.
Universal Credit: https://www.gov.uk/universal-credit
Coronavirus Job Retention Scheme: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
Jobseeker’s Allowance: https://www.gov.uk/jobseekers-allowance/eligibility?step-by-step-nav=e7b3ea75-05d5-4341-b27a-be3b767b1e3f
Self-Employment Income Support Scheme: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
For more information about Scraye: https://scraye.com
