Guidance on the Coronavirus Self-employment Income Support Scheme
The Government have put this scheme in place to help self-employed individuals.
Criteria to qualify:
- Trading profits are less than £50,000
- Main source of income (at least 50%) is derived from self-employment
- Trading in the last financial year, still trading now and plan to continue to do so
Individuals that do not qualify:
- Those who are recently self-employed and do not have a full year of accounts
How to apply for this scheme:
- You cannot, at the moment, apply for this scheme.
- HM Revenue & Customs (HMRC) will contact you if you are eligible for the scheme and invite you to apply online where you will access this scheme only through GOV UK.
Benefits of the scheme (if you qualify):
- You will receive a taxable grant which will be 80% of your average profits from the tax years:
- 2016 to 2017
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- 2017 to 2018
- 2018 to 2019
- The taxable grant will be up to a maximum of £2,500 per month for three months, which will be paid directly into your bank account in one instalment.
- Payments will commence from the beginning of June.
- As the grant constitutes income, you are required to include this income if you make a claim for tax credits.
- If you have not submitted your Self-Assessment Tax Return for the tax year 2018-19, you must do this asap and no later than 23 April 2020.
Additional Government help for the self-employed:
- Deferral of Self-Assessment income tax payments due in July 2020 until 31 January 2021
- Deferral of VAT payments due from 20 March 2020 until 30 June 2020 for a 3-month period
- Grants for businesses that pay little or no business rates
- Increased amounts of Universal Credit
- Business Interruption Loan Scheme
More information can be found at this link:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19
Beware of scams:
- HMRC has warned that 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.
