New Income Support Scheme for Self-employed #COVID19 #coronavirus

The scheme allows the self employed to claim a taxable grant worth 80% of trading profits up to a maximum of £2,500 per month for the next 3 months.

Who can apply

Self-employed individual or a member of a partnership and:

  • submitted Self Assessment tax return for 2018-19
  • traded 2019-20
  • are trading when you apply, or would be except for COVID-19
  • intend to continue to trade
  • have lost profits due to COVID-19

Trading profits must also be less than £50,000

HMRC will use 2018-19 returns data to identify those eligible.

How much

Taxable grant – 80% of average profits from:

  • 2016 to 2017
  • 2017 to 2018
  • 2018 to 2019

Add the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and calculate a monthly amount.

It will be up to a maximum of £2,500 per month for 3 months.

The grant is paid in one instalment.

How to apply

HMRC will contact those eligible.

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.

After you’ve applied

Once HMRC has received your claim and you are eligible for the grant, we will contact you to tell you how much you will get and the payment details.

The grant will count as income for any tax credits claim.

Rishi Sunak, Chancellor
announcing the Self Employment Income Support Scheme.

Rishi Sunak told the self-employed: “You have not been forgotten.”

Commenting on the Chancellor’s announcement of a new income support scheme for self-employed workers today (Thursday), TUC General Secretary Frances O’Grady said:

“With so many of the self-employed facing a collapse in their earnings the Chancellor is right to act.

Francis O’Grady, TUC General Secretary

“This is a welcome step forward for self-employed and freelance workers across the economy, from construction to the creative industries.

“It’s vital that support reaches workers as soon as possible. Many are already dealing with severe hardship. 

PAYadvice.UK 26/3/2020

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