Government Assistance in relation to Coronavirus (COVID-19) crisis For the Self-employed Advised 26 March 2020

Government Assistance in relation to Coronavirus (COVID-19) crisis For the Self-employed Advised 26 March 2020
27th March 2020 Debbie
In Accounting and Tax blog

Support was announced in the form of a taxable cash grant.

It is a single lump sum based on 80% of trading profits, up to a maximum of £2,500 per month for 3 months March to May 2020, which may be extended if needed.

Self-employed, including members of a partnerships will be eligible if trading profits for 2018-19 were < £50,000 and more than 50% of total income. Or if their average trading profits for 2016-17, 2017-18 and 2018-19 were < £50,000 and more than 50% of income is from self-employment.

For those that started trading between 2016 and 2019, HMRC will only use those years for which a tax return has been filed.

In addition, to qualify, you must have submitted a 2018-19 tax return, traded in 2019-20, trading when you apply, or would be except for COVID-19, intend to continue to trade in 2020-21 and have lost trading profits due to COVID-19.

If your 2018-19 tax return has not been submitted you have until 23 April 2020 to do so.

Individuals that claim tax credits would need to include the grant as part of their income.

The scheme is not yet open for applications and HMRC will aim to contact those eligible by mid May. On line services should be available at the beginning of June.  Applications will then need to be made on line.