Yesterday we heard from the Chancellor as he announced the new support scheme available to self-employed! The scheme is open to anyone who is self-employed and seen a loss of income due to coronavirus.
Self-employment income support scheme
In order to qualify for the scheme you must:
- Have submitted a self-assessment tax return for the year 2018-2019. If you have missed the 31 January deadline they have now allowed an additional 4 weeks from yesterday 26th March to submit so you can benefit from the scheme
- Traded in the current tax year 2019-2020
- Trading when you apply for the scheme (or would have been trading)
- Intend to continue to trade in 2020-2021
- Trading profits must be below £50,000 in 2018-2019 and average profits between tax years 2016-2019 of below £50,000. Even an extra £1 over will mean you are not eligible to apply
- If you have been trading for less than 3 years you can still apply and they will use the tax returns which you have
- Self-employment income must be the majority of your income (over 50%)
What will I get???
- Self-employed will get a taxable grant of up to £2,500 per month for 3 months which will be paid to you in one lump sum based on your profits outlined above
- This is to be paid in June and backdated to March 2020
- The scheme will continue to be reviewed and may be extended as required
- Those who started trading in 2019-2020 will not be eligible
How do I apply?
You do not need to do anything. HMRC will contact all those who are eligible for the scheme based on the 2018-2019 tax returns. Once you receive the letter, follow the instructions to complete the information they need and that is it.
What can I do if I need cash before June??
The government have rolled out numerous schemes to help those affected by Covid-19. They are bringing in an enormous amount of new systems, technology and funding which does take time.
It is important to remember that self-employed CAN continue to work during this time as opposed to furloughed employees who cannot work.
In the meantime look for support via universal credit, business loan interruption schemes and make use of any savings you have (but put pack later when you receive the grant!).
Also remember they have deferred income tax payments for July 2020 so if you have money put aside for this tax bill (which i hope all my clients do) then you can use this to help with cashflow until the grant is received.
If you need help submitting your self-assessment in the next 4 weeks please get in touch as soon as possible! Email us at email@example.com
Stay Safe, Stay Home