Martin's coronavirus update

15 NEW need-to-knows incl: 
Bizarre self-employ rule | Quick no-fee 0% debt shift | Part-time furlough | School trip refunds? | Shop return rights being cut | Are you one of '3m' excluded from help? | Holiday Extras U-turn | Kids going to uni? 

We are amid a health earthquake, yet the worry is we will see a possibly even more devastating financial aftershock. With rapid economic decline, and unemployment levels likely to rise maybe even higher than in the early '80s, there are huge challenges on individuals and society.

Compassion, forbearance and mutual support need to be the bedrocks that keep us together. We must understand our politicians can't get everything right, but in return they must listen. Bravo to Marcus Rashford for making that happen, with 'free' school meals continuing during the summer - but sadly those excluded from financial support still need to continue their battle (see below).

Of course, the key here is the practicals. All my new info is below and, as always, it'll be added to the huge weight of info in our constantly updated guides...

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

1) Bizarre new second SELF-EMPLOYMENT grant rule - it's now only for businesses affected by Covid-19 on or after 14 Jul. On Fri, we got the guidance for the coronavirus self-employment income support grant 2 due in Aug. Most was as flagged, but then we spotted: "You will have to confirm your business has been adversely affected on or after 14 July 2020." So we've been digging into it.

To recap, as the Govt says, this second grant is for '70% of your avg monthly trading profits, paid in a single instalment covering a further 3mths' worth of profits, capped at £6,570 in total.' Disappointingly for many excluded from the first grant, this has the same eligibility criteria, so if you were ineligible for that, you are ineligible for this.

As the Govt's own press release from 26 Mar stated: "The income support scheme... will cover the three months to May," ie, Mar, Apr and May. Logic (and basic counting) therefore suggests the second 3mth grant covers Jun, Jul and Aug.

So it's very strange to read the new rule that says you have to declare your business was impacted after mid-Jul, and unfair on businesses heavily impacted in Jun and recovered by then.

Having spoken to HMRC, apparently the grants don't [now?] relate to a specific 3mth time period, they are just grants [though based on 3mths of trading profits].

The rules are simple. The first grant is for those whose 'business was impacted by Covid-19 before 13 Jul' and the second, which comes in Aug, for those 'impacted by Covid-19 on or after 14 Jul'. If impacted before and after those dates, you are due both.

So the new rules are clear. But the implication and message this sends is as clear as mud. If, as the Govt announced, the first '3mth' grant covered Mar, Apr and May, but also now sort-of Jun and half of Jul, what does the second '3mth' grant cover?

Though as there's no closing date for applications (yet), some who've been fine until, say, Sept may be able to claim then.

What counts as being impacted by Covid-19? It's obvious things such as a) you or your staff have been unable to work due to it, b) you can't access your usual place of work, and c) your revenue has been negatively impacted. And it's simple - either there's been an impact, even a small one, in which case you're due the whole grant, or there hasn't.

If you haven't applied for the first grant as you were worried, but now realise you are eligible, use the HMRC eligibility checker. Remember, you CAN claim this if you're working.

2) Warning. Got credit card debts? NO-FEE 0% balance transfers disappearing - act ASAP.  The balance transfer market's been all over the place during the pandemic. The latest trend is the disappearance of no-fee deals. The only decent one left that's open-to-all is Santander's 18mth 0% NO FEE card (at its request, the link goes via our eligibility calc, which shows your acceptance chance).

A balance transfer's when you get a new card that pays off old cards for you - so you owe the new card instead, but at 0% interest. This means all your repayments clear the actual debt.

If you can repay the card within 18mths, no-fee is the winner as there's no cost whatsoever. Apart from Santander, there's RBS/NatWest 20mth 0% cards, but you need to be an existing banking cust to get one. After those, the next best's just 5mths 0%. The field hasn't been this poor for a long time, and it could get worse.

Need longer to clear the debt? If you're unsure how long you need, play safe, go long. The longest is TSB's 30mth 0% with a one-off 2.95% fee* (of the amount you transfer). Full info and more options in our Top Balance Transfers guide.

Follow the Balance Transfer Golden Rules:
a) Clear the debt or shift it before the 0% ends, or you pay the rep APRs: Santander's 18.9%, NatWest/RBS and TSB's 19.9% (APR Examples).
b) Never miss the min monthly repayment or you can lose the 0%.
c) Don't spend on it/withdraw cash. It usually isn't at the cheap rate.

If you're struggling to repay, check out credit card payment holidays, though only do it in an emergency as the interest still racks up.

3) Part-time furlough will be totally flexible. On Fri, the Treasury released its detailed guidance for the new 'furlough and work' option, starting on 1 Jul. This means people no longer need stay on furlough full-time.

There were few surprises. As predicted, the guidance states: "Employers can bring furloughed employees back to work for any amount of time and any work pattern". So someone normally on 40hrs could technically be brought back for 39hrs one week, and get furlough pay for the rest, then 5hrs the next week. Also, see how much you'll be paid for working.

4) Coming next week - what's the best NEW travel insurance? Many of you are asking about getting travel insurance for future travel - it's tricky at the moment, so we're still researching. We hope we'll be able to find something reasonable. Details, if we can, next week.

5) Returning something bought before lockdown? Go QUICK.  Many retailers generously extended their refund policies, so you wouldn't miss out while they were closed. However, most retailers are restarting the clock from their reopening dates, eg, with John Lewis, you've 35 days from when that store reopens to return. See retailer-by-retailer returns policies.

6) Are you one of the up to 3m EXCLUDED from support?   When the Chancellor first launched the coronavirus financial support schemes, they were rightly lauded for protecting millions of people's jobs and incomes. At the time, I said in one interview: "I'd give it an A grade, but what'd really count is how they will help those who'd fallen through the cracks." Now those cracks are fissures. Many are without help, including those who've changed jobs, started a business in the last 18mths, are on freelance PAYE, are limited company directors, work for agencies, are shielding, or just had employers who didn't care. So that grade has degraded.  No. 10 has repeatedly turned down our request for a journalistic question slot at the press briefings, which I'd have used to ask about this. So thanks to Andrew Marr who, unprompted, raised it on his show on Sunday, in my name, with the Chancellor. The clip's below...   Rishi Sunak's answer sadly manages down any expectation of change. So if you're one of the up to 3m people in this situation, while you can hope for the best, I'd suggest you also plan for the worst (use the support list below). As Rishi Sunak 'quibbled' with my number of 3m, I've therefore politely asked the Chancellor to research the exact number. PS: And a plug for the new Excluded UK support group, set up by 3 people impacted, to try to give a coordinated voice to those missing out and a way of raising awareness.

7) Owed £100s for cancelled school trips? We've heard from many parents whose children have had school trips, via firms such as PGL and NST, cancelled and are still waiting for refunds. We've full details in our school trips cancelled help guide, but this is a difficult issue and answers aren't clear-cut. Here's a brief summary...

Legally, as with all purchases, your rights are with whoever you paid. If you paid the school, the school owes you money. Yet many schools are struggling to chase full refunds from the firms themselves. 

We spoke to PGL to ask why it is charging schools cancellation fees, only giving 70%-ish back and telling schools to claim on their insurance, if they have it, for the rest. It argues its sales don't fall under consumer law, it's selling to schools as a business-to-business product and that as the Govt said 'no school trips' and therefore schools had to cancel, this is 'deemed disinclination to travel'.

While morally I don't like this, it's a legal, not a moral, question - so schools will likely need to take legal advice. So, if possible, be patient, show forbearance and give the school time. Yet if you need the money and feel comfortable forcing the school, you can demand a refund or, as a last resort, if you paid on plastic try a chargeback.

8) On maternity or paternity leave? You CAN be furloughed on your return. Last Wed (10 Jun), the furlough scheme closed its doors to new furloughees (another new word). As I explained in a 'stop press' in last week's email , I'd pushed the Govt for an exemption for those returning from parental leave after that date. At the last min, just before the deadline (which coincided with the email send), I got a note from the Treasury, with a quote from the Chancellor to say he'd agreed, and we'd get details on Fri, which we did...

If your parental leave started before 10 Jun and finishes between 11 Jun and 31 Oct, your employer can still furlough you if...

- Your employer had furloughed another staff member before 30 Jun.
- You were on your employer's payroll (ie, had a Real Time Information submitted) on or before 19 Mar.

Full info and links to Govt guidance (in case your employer disputes whether it's allowed) in maternity/paternity furlough, though as always, furlough is at the employer's discretion.

9) Holiday Extras to give many cancellation refunds. Last week, UK holiday firms Hoseasons and Cottages.com had a change of heart on refunds. Now airport parking site Holiday Extras, which previously only offered vchs, has confirmed it'll offer refunds on many bookings for parking, hotel stays and other add-ons which custs cancelled due to coronavirus. Full info in Holiday Extras refunds.

PS: As I noted last week, my suspicion is that news is getting around that the CMA is getting serious, and firms are deciding it's better to pre-empt its investigation to avoid being taken to court, and the brand damage of that. So expect to see more announcements such as this.

10) Don't forget to reconfirm your childcare help eligibility. Parents who receive Tax-Free Childcare (which is worth up to £2,000 per child, per year) or the free childcare service for 3 & 4-year-olds need to reconfirm their eligibility every 3mths. With some schools and childcare services reopening, this is important right now - so you may receive a text prompt to do this from HMRC.

11) If NHS 'Test and Trace' says SELF-ISOLATE, pay and travel works like you're ill. The UK's NHS 'Test and Trace' schemes are all now up and running. If you've been in close contact with someone who tests positive, you may be told to self-isolate for 14 days. If so and you can't work from home, here's what you're due...

- Employee earning an average £120+/wk. Statutory sick pay (SSP) of £95.85/wk, though if your work normally offers more generous sick pay, you may be able to get that.

- Employee earning under £120/wk. If you already claim universal credit, log in to your online journal, update your details and your award should be boosted in line with your drop in earnings. If you're not already claiming, apply for universal credit and if you need cash urgently, request an 'advance' payment.

- Self-employed. You can apply for universal credit as above, though what (if anything) you get depends on your costs, savings and income.

With regards to travel, if you're told to self-isolate - which means you can't go on holiday - you should be able to claim on your travel insurance (if it covers coronavirus, as most got pre-March do) as if you were unable to travel due to sickness. See self-isolation travel insurance help.

PS: Quarantining on return from travel abroad? You can't claim SSP or owt else over and above the normal.

12) Child at or going to uni and your income's substantially dropped? Ask for their loan to be based on this year's income.  Students from England and Wales returning for their second year or above have this week had the deadline to apply for student finance for the 2020/21 year extended until Tue 30 Jun.

Importantly the amount of maintenance loan they get, which covers living costs, is means-tested depending on household income as detailed in their application. It varies in each UK nation...

- England: Higher income means a lower loan, implicitly suggesting parents should fill the gap - see our Parental Contribution Calc.
- Wales: Everyone gets the same amount. Higher income means a higher proportion of it's a repayable loan, not a non-repayable grant.
- Scotland & N Ireland: It's a mix of grant, loan & implied parental contribution. Higher income means less grant & more loan & parental contribution.

Bizarrely, next academic year's funding is based on the 2018/19 tax year. Clearly millions have had substantial income drops since then - if your income's at least 15% lower this tax year, request a 'current year income assessment' instead. For more, see  coronavirus and students. 

Need more general help with student finance? Watch my Student Loans Decoded programme or read Student Loans Mythbusting.

13) Armed forces reserve? You can still be furloughed or get self-employment support. The Govt just announced returning reservist service personnel will be able to be furloughed, even if they missed the 10 Jun deadline - see furlough for reservists . And for the self-employed, if your service made you ineligible for the income support scheme, there'll be a workaround for that. Further details are due next week - info and updates on that will go in self-employed reservists.

14) Expiring photocard driving licence? Extra 7mths to renew. This applies if your photocard expires between 1 Feb and 31 Aug 2020. See driving licence extension.

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