Following on from the chancellor’s announcement, please find details of the support available to the self-employed.
The scheme will mean anyone for whom the majority of their income, more than half, comes from self-employment, with average profits of less than £50,000, can apply for a taxable grant of up to £2,500pcm if their business has been adversely affected by the Coronavirus outbreak.
In order to be eligible you must have filed a tax return for the tax year to 5th April 2019, or, if you have not yet filed it, file it in the next four weeks. You must have traded in 19/20 and be currently trading (or would be except for Covid 19) and intend to continue to trade in 2020 -2021. The grant will provide 80% of your average monthly taxable profit for the last three years. If you have not been self-employed for three years then the scheme will look at the years you have been self-employed.
The scheme is expected to go live at the beginning of June, and, HMRC will contact anyone who they believe to be eligible, to complete an online form. The backdated payments for 3 months will then be paid in a lump sum in June. The grant will be paid directly into your bank. The scheme is intended to provide 3 months of payments, but may be extended if necessary.
The government are still working out the details of the scheme and more information will become available from https://www.businesssupport.gov.uk/ .
The Coronavirus Business Interruption Loan Scheme
In the interim the government are suggesting self-employed people access Universal credits where possible. The Coronavirus Business Interruption Loan Scheme is also available to sole traders and partnerships.
Directors on low salary and dividend income
It should be noted directors of limited companies who draw a low salary and dividends are not self-employed and so will not be eligible for this scheme.
If you have any questions, please get in touch.