Archive: MoneySavingExpert's Money Tips Email

Martin's coronavirus update

18 NEW need-to-knows, incl self-employed & ltd co help, make overdrafts 0%, left a job help, BT Sport credit, students' rights, home-moving & more

The extraordinary has become the ordinary. We live in times that will be long remembered. Today's quaranteenagers will tell their grandchildren how the nation is forging together by staying apart, to protect the vulnerable and fight disease.

State support mechanisms have been built in days that normally take decades. These will provide wealth support for millions - but not all. There are holes. Some won't be helped - more victims of this pandemic.

The team and I are working hard to ask questions and provide information on your behalf. The answers go in what are now four (as they've grown we've split them) constantly updated guides... 

1) New Self-Employed Income Support Scheme - the Government pays 80% of profits up to £2,500/mth. This pays a non-repayable grant to support some whose profits have been hit by coronavirus. More details and a Q&A are in our full Self-Employed Income Support Scheme info, and watch my 10-min video briefing - here's a very quick summary:

- You get 80% of your avg monthly profit over 3yrs, up to £2,500/mth.
- To qualify your avg trading profits must be under £50,000/yr.
- Unlike the employee scheme, here you CAN keep working.
- You do not need to prove coronavirus impact - all who qualify get it.
- It'll be paid by the start of June as a lump sum backdated to March.

For cash in the meantime, you can also claim universal credit.

2) Employee or zero hrs contract / agency worker who's not working? You're due 80% of salary up to £2,500/mth, but what counts as salary? Two weeks ago, the Govt announced the Coronavirus Job Retention Scheme, which means employers can choose to put any staff who were on their payroll on 28 Feb on 'furlough' (standby), and the Govt will cover 80% of their salary up to £2,500/mth - firms can top it up to 100% but don't need to.

For those with a fixed contract salary, the amount is easy to understand. Yet if your income varies, there was confusion over what counts, but it's now clear. You get the HIGHER of:

- What you earned for that job in the same month last year, OR
- Your average monthly earnings over the 2019/20 tax year.

The amount is based on basic salary including overtime, but not including bonuses and commission. Watch my video briefing for zero hrs contracts / agency / umbrella work. 

3) Applying for universal credit? Be patient - it will happen. I've been badgering the Department for Work and Pensions over universal credit delays, and it let me see the figures. Online applications were up 832% last week - rather than a typical 9,751 a day, it went as high as 105,678. It's swamped. 

If after applying online, you're told to ring for an appointment but can't get through, try to be patient (I know it's hard). It's checking who was missed and WILL call you. 

And remember the call-handling staff are working flat out in difficult circumstances, so try not to vent at them - it's not their fault. To check beforehand if it's likely you'll be accepted, use our 10-min Benefits Calculator (which is up to date, except the new Self-Employment Income Support Scheme needs adding).

4) CONFIRMED: Limited company director? You can furlough your PAYE pay. No official scheme has been announced for directors of limited companies, even if they're just one (wo)man bands, and I'm afraid I don't think one is coming, though many are lobbying for it.

However, I have it confirmed from the Treasury that limited company directors, even if they're the only employee, can furlough their PAYE income - ie, get 80% of salary up to £2,500/mth. This isn't likely to be huge as most earn more via dividends (and there's no help there), but it's something, and you can combine it with universal credit.

Unfortunately, unlike the self-employment scheme, if you do this, technically you can't then work for the firm, but you can continue to perform your statutory director's obligations, eg, official legal filings. More in limited company help.

5) CONFIRMED: Old employers can rehire you to furlough you. If you left a job after 28 Feb, that old employer can rehire you to furlough you. The guidance already states they can do this for those they made redundant, yet we asked the Treasury if this applies to those who left voluntarily (eg, to start a new job that's now fallen through), and it has just confirmed it can. 

Yet while employers can do this, it doesn't mean they have to - and sadly many won't. But I hope Gareth's story inspires you at least to ask. More info in how to get your old employer to furlough you. 

6) If I'm furloughed, what happens to my auto-enrolled workplace pension? For furloughed workers, the Govt covers the minimum basic matching pension contributions - so it should continue. See more in furloughed pensions.

7) Has coronavirus hit your finances in a way that's not covered? There are sadly many holes in the support system (in which case universal credit is the prime option) and some financial problems exist too, incl...

- Salespeople's commission not covered in furlough.
- Limited company directors' dividends not covered.
- The cliff edge that cuts off self-employed help at £50,000 profits.
- Payday lenders that won't give any payment reprieve.
- No help if out of work on 28 Feb, even if employed day before and after.
- No help for those who started self-employment this tax year (or even started last tax year, but it made up less than 50% of annual income).
- Rental property firms that won't give refunds for cancelled bookings.
- Job changers whose old employer won't furlough them.
- Employees whose firms choose unpaid leave rather than furloughing.

And these are just the start. To help our work and to feed through to Govt, take our survey to tell us of coronavirus money problems. Where it's deliberately decided Govt policy I doubt we can help, but where it's just a simple omission we may be able to get it considered.

8) MOT due? You've a 6mth extension. If your vehicle's MOT expiry date is on or after Mon 30 Mar, don't worry - your vehicle is still allowed on the road and you've been given an automatic 6mth extension to your current MOT. See MOTs during coronavirus shutdown.

9) Overdrawn with Halifax, HSBC, Lloyds, Nationwide, NatWest, RBS, Santander & more? New help. Regulation changes meant that from the new tax year's start, next Mon, almost all lenders will now be charging about 40% EAR on overdrafts, nearly double high-street credit cards. That makes overdrafts the new danger debt.

Thankfully, many banks are now putting provisions in place, from £300 buffer zones (ie, 0% interest) to suspending the rises, or allowing you to apply for 0% overdrafts. See our bank-by-bank overdraft help.

10) Mortgage lenders are offering extensions so you can delay completion. Homebuyers and renters due to move are being urged by the Govt to delay where possible. To help, mortgage lenders have agreed to offer up to 3mth extensions for those who have already exchanged contracts or agreed completion dates. See home-mover help.

11) I'm about to buy a new home - should I exchange contracts? I've been asked this a lot, and I'm afraid to say I'd urge caution. There's no easy answer. Moving right now is difficult, and the Govt is cautioning against it. Many removal and vehicle-hire firms are shut. And if you're in a chain, it's likely there'll be a break somewhere.

If it's your dream home, you could discuss with the seller whether they'd agree to a delayed completion, so you can exchange now and complete in say 6mths, but you'll need lawyers and mortgage firms to put everything in place, and that mightn't be easy.

12) You now can apply for a mortgage payment holiday online with ALL major lenders (don't just stop your DDs though). Lenders will allow those struggling to pay their mortgage a 3mth break. Ten of the biggest lenders now let you apply online (it was 5 last week). See our apply for a mortgage payment holiday help. Make sure you do apply though, don't just stop direct debits - that'll kill your credit file.                                          

13) You are legally entitled to cash refunds NOT vouchers from flight cancellations. Easyjet grounded all flights this week, and like with other airlines including BA, many people are telling us when they apply for a refund online, they can only see an offer of vouchers.

Yet under EU reg 261/2004 (still in force until Dec), if your flight is cancelled you legally must get a choice between a full refund or an alternative flight. So of course right now that means refunds. 

While the law is plain, some are making you jump through hoops, because the airline industry is on its last legs. So do give some consideration to accepting a voucher.  

But if you want to get cash and it's not offering it, usually the easy route is to call, though expect a long wait. An alternative would be to try using chargeback on your credit or debit card to get your money back. For more options, see how to get a flight refund.

PS: The Govt is organising rescue flights this week to repatriate Brits.

14) Student maintenance will come as normal. The Student Loans Company has confirmed students will be paid their loans/grants next term as normal (eg, if you get an 'away from home' loan you'll still get that even if temporarily at home). 

As for rent... if you live in uni accommodation, some unis are saying they will refund/not charge for next term. If you're renting in private accommodation, you've the same renters' rights as everyone else at this time. If you're in hardship, speak to the uni - it may have a fund. 

15) Home insurance should cover working from home - but not any stock/kit. If you're working from home when you don't normally, provided it's office/clerical work, most insurers are taking a relaxed approach (one key is that no biz visitors come to your home, but that's not likely right now). But if you've brought expensive kit or stock home, it's worth informing it. See full home insurance help. 

16) NHS staff/key workers free parking. NHS workers will be able to park for free at hospitals, while 'key workers' - which includes NHS staff teachers, supermarket workers etc - can park for free in council spaces and NCP car parks. See free parking.

And thanks to all key workers, you deserve far more than free parking.

17) BT Sport customers can ask for 1mth's bill credit. As there's no live sport, it's relented and is now allowing BT Sport customers to claim bill credit (that link explains how this works on the different platforms). This follows the news we reported last week that Sky Sports customers can pause subscriptions. 

18) Smart meter roll-out delayed, but this won't affect 'smart meter-needed tariffs'. If you recently switched to a cheap tariff that requires you to have a smart meter fitted, don't worry - the fact the roll-out of meters has been stopped won't affect your tariff. You'll just be contacted to have them fitted when the situation allows.

Huge numbers watched last week, so ITV asked me to do another 'Ask Me Anything' live coronavirus special. This time, I hope to try to present from home (Mrs MSE will floor-manage). If you've got questions, want the latest updates or prefer to watch explanations rather than read them, do tune in, and please let others know.