Self-employed agents broadly welcome aid


Ben Ireland H


omeworking companies have welcomed government measures to support self-employed agents affected by coronavirus, but warned


many will still lose out. Chancellor Rishi Sunak announced last week


that self-employed people can apply for a taxable grant worth 80% of average profits, capped at £2,500 a month. It is available for an initial three-month period,


with grants paid by June 1, and open to those with a trading profit of less than £50,000 as long as they became self-employed before April 2019. Amanda Matthews, managing director of


Designer Travel, said: “The majority will get some help, which is brilliant, but it’s a tale of two halves.” She thought it was unfair that whereas an


employed worker earning £50,000 or more qualifies for state support of up to £2,500 per month if furloughed, a self-employed person with a taxable profit of £50,000 or more is entitled to nothing. She said: “These homeworkers are working


harder than ever to deal with clients’ refunds, and not getting paid for it – in fact they are losing money.” Matthews also regretted that recent recruits will


not be eligible for the scheme, explaining that 10 of her agency’s 90 homeworkers had joined after being made redundant when Thomas Cook collapsed. “Across the industry there will be hundreds of people in this position,” she said. “That’s a real concern.”


ALSO IN THE PAST WEEK...


Wednesday, March 25 O


O


Thursday, March 26 O


Royal Caribbean extends suspension of sailings until mid-May


Virgin Voyages makes redundancies among its shore-side staff in the US


O O O Travel Counsellors chief executive Steve Byrne


said the government’s measures were a “welcome relief” but needed to “go further” and be “given quicker”. He called for an extension to cover those who are due to file their first tax return this year and business owners who don’t employ anyone else. Holidaysplease director Charles Duncombe


said the measures had been “pretty well received” but the “only exception” were those with their own limited companies, who don’t qualify. “The only assistance they can get is if they


furlough themselves, which is impossible,” he said. Steve Witt, co-founder of homeworking group


Not Just Travel, said the support was a “lifeline” for which “many of our homeworkers should be eligible”. But Witt said waiting three months for payments


could be “agonising” as many homeworkers were “banking on commissions for bookings that are either deferred, cancelled or hanging in the balance”.


Amanda Matthews


‘We are essen T


Ben Ireland


rade leaders say agents and tour operator staff should be classed as ‘essential workers’ as they continue to rebook customers while their businesses lose money hand over fist. Many travel firms plan to apply for the government’s


Coronavirus Job Retention Scheme, which sees the state cover them for up to 80% of their employees’ wages if they cannot work as a result of the coronavirus. However, some bosses say their teams are as busy as


ever, but issuing refunds and processing cancellations rather than selling holidays and bringing in revenue. Phil Nuttall, managing director of the Travel Village


Group, has written to Abta to ask the trade association to lobby government to place agents in this category. He wrote: “Furlough is great, but for the travel


industry it would be wholly appropriate for government to give some exemption to Abta members who need more people working to keep up with the demand of administration and refunds.”


Hays Travel furloughs ‘majority’ of staff O London City airport suspends operations


Loganair plans to ground half of its 44-aircraft fleet


Flight Centre makes third of global workforce redundant


Back-Roads Touring sales manager Lockie Kerr reveals redundancy


Friday, March 27 O O


O


Heathrow credit rating downgraded


Abta discounts and defers membership fees from July 1


Dnata to furlough third of UK workforce


O Gatwick says it will close North Terminal O


FCO charters further flights to return holidaymakers from Peru


6


2 APRIL 2020


travelweekly.co.uk


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