Support for self employed affected by coronavirus outbreak

Chancellor Rishi Sunak announced on 26th March 2020 the scheme to support UK self-employed who lost their income due to covid-19 outbreak.

This scheme will allow to claim a taxable grant worth 80% of your average trading profits over the last three years and up to a maximum of £2,500 per month. It will be available for the next 3 months. This may be extended if needed.

SELF-EMPLOYED OR PARTNERSHIPS ARE ELIGIBLE IF:

• have submitted the Self Assessment tax return for the tax year 2018-19. Sadly, people who registered as self-employed on or after 6th April 2019 are not eligible

• traded in the tax year 2019-20

• are trading when you apply, or would be except for COVID-19

• intend to continue to trade in the tax year 2020-21

• have lost trading/partnership trading profits due to COVID-19

• trading profit are less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19

• more than half of their income in these periods must come from self-employment

The cash grant will be paid directly into the bank account, in one installment. Hopefully in the begging of June.

HOW TO APPLY

Applications are not yet available.

HMRC will contact you if you are eligible for the scheme and invite you to apply online.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020 to be entitle to cash grant.

The cash grant will be paid directly into the bank account, in one installment. Hopefully in the begging of June.

In the meanwhile, if you are struggle waiting for a cash grant or are not entailed to apply for this scheme please check other help you might get:

• deferral of Self Assessment income tax payments due in July 2020 and VAT payments due from 20 March 2020 until 30 June 2020

• grants for businesses that pay little or no business rates

• increased amounts of Universal Credit

• Business Interruption Loan Scheme

More detailed guidance you can find on gov.co.uk .

If you’re a director of your own company and pay yourself a salary through PAYE and dividends are not covered by this scheme but may be able to get support using the Job Retention Scheme.

Let's work together through tough times, so please contact us if you have questions or need any help info@acbaccountancy.co.uk or 07895-408-693.