Coronavirus: Funding if you are Self-Employed..
The government unveiled measures on 26 March to support the majority of self-employed workers experiencing trading difficulties due to Covid-19.
Key details of this scheme and first steps to considering whether you are eligible are included below.
Information about funding is changing rapidly and the information below is correct as at 26 March 2020. Our blog is the best place to stay ahead of the latest changes.
**UPDATE 1 APRIL 2020** : Our latest blog covers some Frequently Asked Questions relating to the Self Employed Income Support Scheme
Who can apply?
- You are self-employed or a member of a partnership and have lost income due to coronavirus.
- You have traded in the year 2019/2020 and have submitted your 2018/2019 tax return
- You intend to continue trading in 2020/2021
- Your trading profits / share of partnership trading profits in the 2018/2019 tax year must be less than £50,000 and these profits must be more than half of your total taxable income.
- Your average trading profit / share of partnership trading profits for 2016/2017, 2017/2018 and 2018/2019 are less than £50,000 and constitute more than half of your total taxable income.
- If you started trading / being in partnership after 6 April 2016, the shorter period of trade will be looked at for averaging purposes.
If you have not submitted your 2018/2019 tax return, please contact us immediately. HMRC are allowing you to file these by 23 April 2020 so you have access to the above scheme.
What will you receive?
- A taxable grant which will amount to 80% of your average profits from the relevant tax years above.
- This will be to a maximum of £2,500 per month for up to three months
- The grant will be paid directly into your bank in one instalment
The scheme is expected to be up and running from the start of June but can be backdated. To help estimate claim amounts we have produced the following:
How can you apply?
- You cannot apply for this scheme yet
- If you are eligible HMRC will contact you directly
- You will then apply online through .gov.uk
- Beware of phishing emails including links to receive this grant. HMRC will not contact you in this manner.
HMRC have requested that people do not contact HMRC directly regarding this scheme at this time as this will delay the roll out of the above. If you have any questions, please contact Sowerby who will be available to assist you.
Other funding available
- You are able to claim Universal Credit, providing you meet the usual eligibility criteria.
- The requirements of the Minimum Income Floor have been temporarily relaxed for Universal Credit.
- New claimants will not need to attend the jobcentre to demonstrate gainful self-employment
- If you have savings of £16,000 or more, you are not entitled to claim Universal Credit.
- Self-assessment income tax payments due in July 2020 can be deferred
- VAT payments due from 20 March to 30 June 2020 can also be deferred
- Grants are available for businesses with premises that pay little or no business rates
- The Business Interruption Loan Scheme is now live
Our previous blogs cover the above items more in detail. Please contact us with your queries, we are more than happy to help.