COVID-19 – Self-Employed Income Support Scheme
On the 26th of March 2020 Chancellor Rishi Sunak announced a series of measure designed to help the self employed through the COVID-19 Crisis, below is a brief summary of what was announced.
You are entitled to use this scheme if you have lost income due to the Coronavirus and are self-employed or if you are a member of a partnership. This scheme will give you a taxable grant of 80% of your trading profits up to £2500 per month for the next three months and may be extended if required.
To apply you will need to fulfil the following requirements
Have submitted the 2018/19 tax return to HMRC.
Have traded in the current 2019/20 tax year.
Are currently trading when you apply or would be trading if it were not for the COVID-19 outbreak.
Intend to trade for the 2020/21 tax year.
You have lost your income due to the COVID-19 outbreak.
This will only apply if your trading profits are less than £50000 and you get more than half of your income from Self Employment. At least one of the following conditions must be met.
Having traded in the 2018/19 tax year and have trading profits of less than £50000 and these constitute more than half of your taxable income.
Having traded for the tax years 2016/17, 2017/18 and 2018/19 and the average of these trading profits are less then £50,000 and they make up more than half of your taxable income.
You will not be able to claim the grant if you have still not submitted the 2019 tax return and you have been given a deadline of the 23rd of April 2020 to submit this return if you wish to be considered for the grant. If you have not submitted a tax return yet and have only started working self-employed you will not be entitled to claim the grant.
The grant will be paid directly into your bank account. HMRC will contact you and invite to apply for the grant if your eligible, you do not need to contact HMRC before you are invited to apply.
The first payments will be made before the first week in June.
Self-employed will also be able to get access to the previously announced help for – deferral of self -assessment and vat payments, grants for businesses that pay business rates, increased universal credit and business interruption loan.
If you are the director of your own company you will be able to claim support using the Job Retention Scheme.