Income Support Scheme helps those affected by COVID-19
In response to pleas for the Chancellor to support Britain’s self-employed workers during the COVID-19 crisis, a new Self-employment Income Support Scheme has been announced.
The scheme enables self-employed workers to claim a taxable grant worth 80% of their trading profits, to the value of £2,500 per month maximum, for the next 3 months.
At time of writing (15.04.2020) the scheme is not currently live but will have qualifying criteria that includes:
To have submitted a Self-Assessment tax return for the tax year 2018-19
To have been trading in the tax year 2019-20
To be currently trading upon application, or would be without the COVID-19 Pandemic and have the intention to continue to trade in the tax year 2020-21
The business must have lost trading/partnership trading profits due to COVID-19
Self-employed trading profits must not exceed £50,000
At least 50% of total taxable income must be comprised of the profits from self-employment
The data provided on 2018-19 returns will be used to identify eligibility along with records of profits in the two previous years where relevant and HMRC will contact those that have qualified by the beginning of June 2020.
In addition, further help for the self-employed has been introduced in the form of:
Self-Assessment Income Tax Payments that were due in July 2020 along with VAT payments due from 20 March 2020 have been deferred until 30 June 2020
Grants have been made available for companies that pay little or no business rates
Universal Credit amounts have been increased
A new Business Interruption Loan scheme has been introduced
If you would like any further information on any of the new or existing schemes, we are able to assist with practical advice. Please contact our dedicated team on 01932 320800 or email email@example.com and we will be happy to help.