The Self-Employment Income Support Scheme is due to be active on the 13th May 2020 but how are HMRC calculating the amounts and what if you are not eligible?
The scheme will enable the self employed to claim a taxable grant of 80% of their monthly trading profits. This will be paid in a single payment to over 3 months and will have a cap of £7,500.
The grant will be subject to National Insurance and Income Tax.
How is the grant calculated?
The taxable grant is based on your average trading profit over the last 3 tax years:
- 2016 – 2017
- 2017 – 2018
- 2018 -2019
Trading profits from these years will be added together then divided by 3 to reach the average.
You can use the online eligibility checker to determine if you can make an application, if you are eligible then you will be directed to set up a Government Gateway account and if you are not eligible please contact your accountant or fill in the online form to request a review from HMRC.
If you need further advice please contact AJR & Co Ltd