If you’ve lost your job due to COVID-19, here’s what to do next
1. Apply for financial support
Depending on your situation, you may be eligible for financial support during the COVID-19 pandemic. If you have lost your job, there are various measures in place to support you and your employer, or you as a business owner.
If you’re already receiving benefit payments, you will continue to receive payments as normal. You can read more on the UK government website.
Financial support for you individually
Universal Credit can assist with your living costs if you’re on low income or if you have lost your job. It’s paid monthly and the amount will be made up of a standard allowance and any extra amount that applies to you. Your individual circumstances will be assessed each month and the amount you are paid may vary month-to-month. The standard allowance is as follows:
| Your circumstances | Monthly standard allowance |
| Single and under 25 y/o | £342.72 |
| Single and over 25 y/o | £409.89 |
| In a couple and both of you are under 25 y/o | £488.59 (for you both) |
| In a couple and either of you are over 25 y/o | £594.04 (for you both) |
Financial support for your business
The UK government has put together a variety of business support measures to help employers as well as self-employed individuals. You can get approved for loans, tax relief and cash grants and these can apply whether your business has remained open or if it has closed for lockdown.
To find out what support there is for your business visit the gov.uk website.
2. Reduce your expenses
You can start by assessing your current budget and lifestyle. Prioritise the necessary payments and then ask yourself what you can cut out temporarily. Pause discretionary payments like memberships and subscriptions – anything you will not have to pay a fee to re-join later.
Something else that will be very helpful during this time will be to ask your lenders for relief. Make a list of your accounts, utility companies and other lenders and proactively contact them to ask if there can be any reductions or deferrals on your payments. Just be careful that you understand the relief terms you are agreeing to.
3. Look for other work
As much as the support from government grants and financial aids can help, you are going to need to find a new way of earning an income. The problem is that it is not a good time to be looking for a new job. Here are a few things to keep in mind should you find yourself searching during the COVID-19 pandemic:
Get comfortable networking online
Events will be cancelled for a long time – you’re going to need to adjust your networking strategy. Join professional groups on Facebook and LinkedIn and get ready for virtual interviews.
Use this time to boost your skills
Now is a good time to refresh your knowledge in your field so that when the opportunities arise you are already ahead of other applicants.
Reach out to former colleagues and have virtual coffee
Similar to networking online, however, these are people you have worked with before and know the value you bring to the job.
4. Check if you’re entitled to a tax refund
In the midst of being let go from your job or having your hours reduced and significant income lost, now would be a great time to learn that there’s a sum of money owed to you. Well, there might just be.
HM Revenue & Customs (HMRC) collects tax automatically from salaries, wages and pensions. A Self Assessment or personal tax return is a way for HMRC to collect tax from individuals with income that doesn’t fall under salaries, wages and pensions.
Anyone who has lived and worked in the UK is eligible to claim back tax. Even if you have left the UK, you are able to make a claim. You can make a tax claim against a financial year for up to five years. If you are planning to leave the UK during the current year, you can also claim.
Who needs to complete a Self Assessment tax return?
If in the last year you:
- Were self employed
- Became a company director
- Received income from your savings, investment or property
- Had an annual income of GBP100,000 or more
- Had to pay Capital Gains Tax
- Received income from overseas
HMRC may require you to submit a Self Assessment tax return. If you’ve never submitted a Self Assessment tax return before, you’ll need to register with HMRC first. This can be done online or over the phone.
How much you can claim back
If you have earned less than your tax-free allowance, you can claim and receive back all the tax you have paid in that tax year. You can also claim back for the previous four years if it applies. You are more than likely also due a tax rebate even if your earnings exceeded the tax-free allowance.
Many people aren’t aware that they are due a tax refund but it is a great bonus to receive at the end of the financial year – especially if you have been let go from your job and need a bit of extra help.
5. Get some help
In the moment, being let go can feel like your whole world is falling apart. These are unprecedented times and this life change does not reflect on you as an employee. Ask for assistance wherever you feel you need it, even if you never would have before.
If you are unsure of what your next moves are, and if you have questions, it’s best to get advice from a professional so that you can ensure you’re doing things correctly.
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