Self Employed help during COVID-19
The Chancellor has announced a new Self- employment income support scheme for those affected by COVID-19.
What self- employed help is available?
Self-employed people will be able to apply for a grant of 80% of their monthly profits over the last three years, up to £2,500 a month.
There is no need to get in touch with HMRC, as the scheme isn’t yet open for applications. Those eligible will be contacted by HMRC by the beginning of June and invited to apply.
Mr Sunak said the grants will be available to people across the UK for at least three months, and longer with necessary.
The Chancellor added in all, 95% pf people who earn most of their income as self-employed would be covered.
Who can apply for the scheme?
You can apply if you are self-employed 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
What are the stipulations?
- The self-employed trading profits must be less than £50,000
- These profits must be more than half of your income
How are these determined?
At least one of these conditions must be met:
- 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
AJR & Co Ltd can prepare the claim for when the HMRC have provided a portal through which to claim.
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