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COVID19 Support for the Self-Employed

| Tue 07 Apr 2020
COVID19 Support for the Self-Employed

COVID19 Support for the Self-Employed – The Chancellor set out a package of temporary measures to help the Self Employed. We can update you as per the below.

Help for the Self Employed

There will be a new Self-employment Income Support Scheme to support self-employed people who have been adversely affected by COVID-19. This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.

Who can apply ?

You can apply if you’re a self-employed individual or a member of a partnership and you:

Have submitted your Income Tax Self Assessment tax return for the tax year 2018-19

Traded in the tax year 2019-20

Are trading when you apply, or would be except for COVID-19

Intend to continue to trade in the tax year 2020-21

Have lost trading/partnership trading profits due to COVID-19

Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:

Having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income

Having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period

If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020.

HMRC will use data on 2018-19 returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way.

How much you’ll get?

You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable):

    2016 to 2017
    2017 to 2018
    2018 to 2019

To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount.

It will be up to a maximum of £2,500 per month for 3 months.

We’ll pay the grant directly into your bank account, in one instalment.
How to apply

You cannot apply for this scheme yet.

HMRC will contact you if you are eligible for the scheme and invite you to apply online.

Individuals do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.

You will access this scheme only through GOV.UK.

Warning

If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam.

After you’ve applied

Once HMRC has received your claim and you are eligible for the grant, we will contact you to tell you how much you will get and the payment details.

If you claim tax credits you’ll need to include the grant in your claim as income.

If you want to have more information on the above, please click here to access HMRC website.

Please do not hesitate to contact us on 020 3096 0306 or at info@elevate-accounting.co.uk should you require more information or assistance.

Alternatively you can CLICK HERE to get in touch.

We are here to help you

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