Published: 27/03/2020 By Dean ClarkFirst and foremost I hope you and your family are well, our health and wellbeing remains of paramount importance during these difficult and most worrying times.
In recent days the UK Government has introduced a number of financial measures, designed to protect people and their businesses from the financial and economic impact of COVID-19. In the latest announcement, the Government has focused efforts on assisting those who are self-employed.
The ‘Self Employment Income Support Scheme’, will aim to provide 95% of all self-employed individuals, or partnerships, with a taxable grant worth up to 80% of their profits, capped at a maximum of £2,500 per calendar month, for the next 3 months, and potentially extended if necessary.
Below is a useful link to HMRC’s website which sets out clearly the eligibility for scheme qualification and how it is intended to work.
Please note that for the time being you need take no action. HMRC will be reviewing your historical tax data to check potential eligibility, and will contact you directly to invite you to make an application where applicable. Grants are expected to start to be paid out around the beginning of June 2020, and HMRC will pay the appropriate grant directly to an eligible claimants bank account. It is our understanding the grant paid will be backdated to March 2020 and the sum paid equivalent to 3 months of the relevant sum.
If you are currently claiming tax credits you will need to include the grant in your claim as income.
Prior to this June date, and whilst waiting on the payment of this grant, self-employed individuals remain eligible for other forms of Government support, to include ‘Universal Credit’ and possible loans through the Government’s newly introduced ‘Coronavirus Business Interruption Loan Scheme’, (details of which we have already sent you and can be found displayed on our website here).
Here is a simple flow chart which may also prove useful
We appreciate these are uncertain times for us all, and should you have any queries or wish to discuss matters we are open for business as usual, and happy to help where we can. Please do not hesitate to contact us or visit our dedicated webpage here.
Our very best wishes
Dean Clark FCCA