Financial help for the self employed - 26.03.20

I almost heard the sigh of relief from my (home) office.............

'YOU HAVE NOT BEEN FORGOTTEN'

Self employed individuals, who have been adversely effected by coronavirus, will receive a taxable grant worth 80% of their average monthly profits up to ￡2,500 per month.

The scheme will initially cover three months to May. Grants are expected to be paid in a single lump sum installment covering all 3 months and will start to be paid at the beginning of June.

The averaging will be based on the last 3 years profits, or less if only 1 or 2 years tax returns have been submitted since starting self employment.

The scheme will be open to those with trading profits of less than ￡50,000 in 18/19 or an average trading profit during 16/17, 17/18 and 18/19 of less than ￡50,000.

The scheme will be available to those who receive the majority of their income from self employment, being more than half of their total taxable income.

The scheme also applies to members of partnerships.

To receive this grant you must already be self employed and must have submitted (or been requested to submit) a 2018/2019 tax return.

You must have traded during 2019/2020 and still be trading (or would be except for COVID-19) and you must be intending to trade during 2020/2021.

Anyone who missed the 31/1/20 tax return deadline will have 4 weeks from today to submit their 2018/2019 tax return and still receive the grant.

The grant will not be available for those who started self employment after 6/4/19 (i.e in the current tax year).

You will be able to claim this grant and continue to do business.

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

Those who pay themselves a salary and dividends through their own company are not covered by this scheme but may be able to get support through the Coronavirus Job Retention Scheme.

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

HMRC have issued the following warning: You will access this scheme only through GOV.UK. 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.

At the time of writing, this information is true and correct to the best of my knowledge and understanding of the latest government guidance. No reliance should be placed on the above article.

Samantha Mitcham - 26.03.20