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self employed income support scheme

Self-employed income support scheme


It was announced tonight that Self Employed workers who have been affected by the COVID-19 crisis will be entitled to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 per month for the next 3 months.
 
You can apply if you’re a self-employed individual or a member of a partnership and you: 

  • have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
  • 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 

Your self-employed trading profits must also be less than £50,000 and more than half of your income comes from self-employment. This is determined by at least one of the following conditions being true:

  • having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
  • having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period 

If you started trading between 2016 and 2019, HMRC will only use those years for which you filed a Self-Assessment tax return.
 
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.
 
HMRC will use data on 2018-19 returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way.
 
HMRC will contact you if you are eligible for the scheme and invite you to apply online.  
 
Individuals should not contact HMRC now.
 
You will access this scheme only through GOV.UK. If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help, or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card, or bank details, it is a SCAM.
 
If you’re a director of your own company and paid through PAYE you may be able to get support using the Job Retention Scheme.
 
Full details and guidance can be found here:
 

I you have any questions concerning the above, please do not hesitate to contact us.

Many thanks,
The MABK Team

Contact Mad About Bookkeeping:
01420 768286
Email Us - or call 01420 556335