Archive: MoneySavingExpert's Money Tips Email

Martin's coronavirus update

13 NEW need-to-knows incl: 
53 hol firms ranked for refunds | Work from home tax break | Lock in 1.16% easy access | Mortgage pay hols CAN impact credit | Supply teachers | Self-employ or pay holidays extended? | Static caravans & more

It's my tenth weekly 'coronavirus new need-to-knows'. Staggeringly, the flow of information remains constant. I hope we've been able to help you, or at least help you understand when, sadly, there is no help.

This is a tough period for many, so it's rather appropriate this is Mental Health Awareness Week. Like most people, over the years I've had my dark days. And in this stressful time, we all need to remember to be kind to ourselves as well as others, and do what's needed to look after ourselves, be it smiles, silliness, a walk or a talk.

Sadly, debt and mental ill health are a marriage made in hell. It's now 9yrs since I wrote the first incarnation of the MSE Mental Health & Debt guide - with the aim to treat it like any other financial issue. I've since set up the MMHPI charity (who, as always, would love those with lived experience to join its policy feedback panels).

Next week I'm planning some half-term family time, and might play a couple of (very poor) rounds of golf. Though I'll be back if big news breaks. Meanwhile, most of the MSE team are still hard at it, keeping on top of things and, crucially, updating our key coronavirus guides...

And finally, as always, while we strive for 100% accuracy, please give us just a touch of wriggle room - things are changing all the time.

1) The 53 best and worst travel firms for refunds: Ryanair and Teletext fail, Hays Travel succeeds. Over 27,000 of you responded to our travel refunds survey, building up a huge pile of data. As part of this, we were able to order 53 travel firms ranked for refunds by subtracting the 'poors' from the 'greats'.

Plaudits to top performers Travel Counsellors (+95) and Hays Travel (+70). A sad shake of the head at Travel Trolley with a shocking (-95) and similar at big names Teletext (-94), Ryanair (-82) and Tui (-60). See how your firm fared and, if still struggling, our how to get travel refunds help.

We will be forwarding a more detailed dossier on this to the Department for Business and the Competition & Markets Authority.

2) Working from home? Claim tax back on additional expenses. If your employer requires you to work from home, as many have done in recent months, and that means you've had increased costs, eg, heating and electricity, you're entitled to claim something. This can either be tax-free extra cash from your employer (not common right now) or, if it won't, a tax break. And you don't need receipts for expenses of up to £6/wk.

We've had a huge response since I first wrote my how to claim tax back for working from home blog on this. And it's a good time for this reminder, with some now returning to their usual places of work after working from home.

3) Taking a payment holiday may hurt mortgage applications via the back door. Ever since mortgage and other payment holidays launched, we've been assured by the regulator that it won't impact credit files. Yet I started investigating a tip-off that some firms are looking at using Open Banking data or payment records to work out if you've had a mortgage holiday, then factoring it in. I've asked the FCA about it. Full info and what it means in when payment holidays may hurt applications.

4) Lock in 1.16% NS&I easy-access as savings rates tumble again. The UK base rate dropped to a 325yr low in Mar, just 0.1%. Savings rates have gradually crumbled since and the prior top easy-access players, Marcus and Saga, have cut rates again, from 1.2% to 1.05% and 1%.

The highest rate now is state-owned NS&I's Income Bonds (don't worry about the name, it's just an easy-access account) at 1.16% AER. Crucially, the terms say it has to give a min 2mths' notice to drop rates, so that's some short-term protection at least. Alternatively, lock cash away for 1yr with app-only Atom Bank at 1.4% AER. Full info in Top Savings.

5) Will the Self-Employment Income Support Scheme (SEISS) be extended? Last week, the furlough scheme for employees was extended until Oct. So no surprise the most common question I've had this week is whether SEISS will be extended too. While the lump sum payouts are being made now, these cover income for Mar to May, so the period covered ends in just 11 days.

Sadly, there is no official news, and I'm afraid the response to the feelers I've put out aren't great. SEISS's future is currently being considered, but it's far from certain if another lump sum will come. I've tweeted the Chancellor on it (feel free to retweet to increase the pressure). Overall, to manage expectations, I'd say it's only 50-50 if there'll even be another payment. I hope for news soon - updates as always via my social media, in the coronavirus self-employed guide and here.

6) Mortgage and other payment holidays unlikely to be extended. If you'll need one, know the deadline dates. Another question that's filled my (e)mailbag is whether payment holidays will be extended too.

I think it's unlikely we'll see the 'anyone can ask for and get a payment holiday' schemes continue, especially for mortgages. These were stopgap solutions designed to get people over the hump, before the support schemes launched.

Instead expect to see more targeted help, specifically for the group who were fine financially before all this, are struggling now, but should be able to get back on their feet once it's all over.

If you haven't taken a payment holiday and may need one, there's still time, but don't do these unless you have to. Knowing the last application dates is important...

- Until at least 20 Jun: Mortgage payment holidays
- Until 9 Jul: Credit & store cards, personal loans & catalogue debt
- Until 27 Jul: Car finance (PCP, lease, HP), pawnbroking, buy-now-pay-later & rent-to-own, payday loans (interest & payment hols)
- Until 18 Aug: Insurance, eg, car, home, loan payments
- Until 20 Oct: Individual voluntary arrangements

7) CONFIRMED: Umbrella and agency supply teachers' contractual bonuses should be included for furlough. We've been pushing on this a long time - I'd even managed to get HMRC to give me a quote on it. And last week, hurrah, finally the Govt's official guidance for employers was quietly updated to match that quote, saying: "When variable payments are specified in a contract and those payments are always made, they may become non-discretionary. If that is the case, they should be included when calculating 80% of employees' wages."

This clears up the big issue for supply teachers in Eng/Wales. They tend to earn minimum wage, plus bonuses on top (to allow easy pay changes for different work). Many umbrella firms had told teachers they were just due 80% of min wage, as the bonuses are 'discretionary'. Now, we hope all firms will furlough at the higher amounts.

We've checked and sadly past furlough pay can't currently be backdated (though HMRC is considering changing that) but, as many firms are currently applying for the money for May's payroll, they are allowed to adjust the amount for that. Full info in supply teacher pay.

8) Ltd co directors - watch HMRC boss's answer as to why dividends weren't covered in self-employment help. I asked him via my ITV show (thanks to ITV for the clip) - watch HMRC on directors' dividends.

9) Warning. DON'T cancel your summer holiday. If you are trying to shore up your plans, and thinking of cancelling as "it won't happen" or "I won't go anyway", be careful. Unless the company has a generous cancellation policy, if you choose to cancel, that's a 'disinclination to travel' and you aren't entitled to money back from the firm or your insurer.

Instead wait for the holiday firm to cancel, then you're due a refund. Even if it doesn't cancel, if the Foreign Office still advises against travel, as long as you bought travel insurance in time, most providers will cover you. If neither happens, you're likely no worse cancelling later than now. However, if you're definite you won't travel, you could ask to move the date, or for a voucher. More info: Can I cancel my trip?

10) New: Ask insurers to reduce cover or cancel without fees if you're struggling (car, home, travel, boiler, life, PMI and more). On Mon, regulator the FCA's new insurance rules came into play for those who, due to coronavirus, have had lifestyle changes or are financially struggling. Things they must look at include (see specific car insurance help below)...  

- Your policy is reassessed to ensure suitability: For example, if your car mileage for the year has dropped substantially, insurers shouldn't charge fees to change that on your policy and should refund or change monthly premiums to reflect the new cover.
- 'Nice-to-have' extras to be removed: Eg, if you want to drop 'all-risks cover' from your home insurance as you're not taking expensive items out of the home, it should be allowed free of charge.
- Waiving cancellation fees for those ending policies.
- Need more help? 1-3mth payment holidays: If you still can't meet monthly payments even after the above, you can get a payment holiday. Though as that means the provider lent you money to pay upfront, there's usually interest and it'll still rack up, so only do it if needs must.

If you tried in previous weeks to get help and were turned down, try again now. Full info in insurance hols.

11) Can I get a refund on my caravan pitch fees? This has been bubbling away in our mailbag for a while. A difficulty is demarking what part is paid to, if you like, 'park your caravan' and what is for the 'access and services'; then enforcing a partial refund. We're on it - here's what we know so far - but aren't there yet, so will update, please give us time. If we see what we think is institutional bad practice we'll present a dossier to the Competition & Markets Authority.

12) Tax-Free Childcare and free nursery hours in Eng won't be cut if you're temporarily working less. The additional free 15hrs of nursery time (on top of the 15hrs everyone gets) for 3 and 4yr olds and the Tax-Free Childcare scheme are dependent on earning a min income of £140/wk. When schools and childcare provisions return, if you're temporarily earning less, you'll still be able to get both as normal.

Critical workers, eg, doctors, who due to coronavirus overtime go over the £100,000 earnings cap, will still be eligible too. See coronavirus childcare rules info, which includes details for Scot, NI and Wales.

13) What do I do if I can't holiday due to 2 weeks' quarantine at my destination? Currently the Foreign Office advises against all non-essential travel, so providing you had travel insurance in place before coronavirus, you're normally covered even if the flight/holiday isn't cancelled. The quarantine issue is therefore speculative, but we're starting to prepare our quarantine-affected holidays guidance.

For example, if you need to quarantine on arrival, it's unlikely airlines or hotels will cover you if they're up and running, nor can you use credit or debit card protection, because the service is still available.

That means it'll come down to your travel insurer, where it's policy by policy. Direct Line told us it'd be covered if you bought the cover before 13 March, Admiral and Planet Earth said you wouldn't, while Leisure Guard says it depends on circumstances. If unhappy, you can take them to the ombudsman.

If however you had a package holiday, which was sold on included excursions (think all-inclusive golfing holiday/Disney World breaks) then the package travel provider may be obliged to refund you.

In the last in the series of TV's must-watch Thursday financial briefing (OK, I'm the one giving the briefing, and writing that, but still pls watch anyway), full of easy-to-understand explainers on the latest financial support, MoneySaving tips and key info. As we're live, you set the agenda by suggesting questions, just tweet me @MartinSLewis using the show's hashtag #MartinLewis. Do watch or set the DVD recorder.

PS: Technically it's the last in this emergency series, but I'm in discussions about restarting in a fortnight.