The Government have now announced a scheme that assists the self-employed across the country during the COVID-19 pandemic. The Self-Employed Income Support Scheme will provide self-employed individuals a taxable grant worth 80% of trading profits, up to £2,500 a month for the next three months. It will also apply to members of partnerships.
The calculations will be based on individuals’ Self Assessment tax returns for the last three tax years, where possible, to obtain a fair and reasonable average.
Self-employed individuals or members of a partnership can apply if they:
- Have submitted their Self Assessment tax return for the tax year 2018-19
- Traded in the tax year 2019-20
- Are trading when they 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
The scheme will be open to all individuals with trading profits up to £50,000 in the tax year 2018/19 or have an average trading profit of less than £50,000 from earlier tax years, 2016/17, 2017/18 and 2018/19, and where those individuals derive more than half of their income in these periods from self-employment.
All individuals eligible for the new Self-Employed Income Support Scheme will be notified by HM Revenue and Customs (HMRC). The Chancellor of the Exchequer, Rishi Sunak confirmed that eligible applicants will receive access to funds no later than the beginning of June, with self-employed and freelance taxpayers encouraged to apply for Universal Credit in the meantime.
Help right now
For any of your clients that need to claim Universal Credit, an advance can be requested on the first payment, see how to get an advanced first payment here. You can read more about claiming a grant through the coronavirus Self-employment Income Support Scheme here.
What to do next
We recommend you view the guidance which will be updated as the scheme is further developed, and in line with any further government announcements. Should you need any further assistance or advice then please contact us on 01332-369999 or via the contact form from our website http://www.milestone-solutions.co.uk