Government unveils help for self-employed
Self-employment Income Support Scheme
UK Chancellor Rishi Sunak has this evening announced help for the self-employed at the daily Government briefing. Here are the details:
What is it?
The Government’s new Coronavirus Self-employment Income Support Scheme is open to those who were trading in the last tax year and are planning to continue to do so. The scheme will be open to those with a trading profit of less than £50,000 in 2018-19, or an average trading profit of less than £50,000 for tax years 2016-17, 2017-18 and 2018-19. More than half of the taxpayers income needs to come from self-employment to qualify for the relief.
What help is available?
If a loss in income has been suffered due to the Coronavirus crisis, a taxable grant will be paid to the self-employed individual or partner, worth up to 80% of profits, and capped at £2,500 per month. The grant will be initially available for three months, payable in one lump-sum, and is anticipated to be paid at the beginning of June.
How do I claim the help?
The Chancellor said this will cover 95% of the UK self-employed population.
This is how it works:
- HM Revenue and Customs (HMRC) will use existing information to identify those potentially eligible and will invite applications
- The application form will require confirmation that eligibility requirements are met
- Payment will be made directly into the recipients bank account, details of which will need to be confirmed on the application form
- There is no need to contact HMRC now. Those potentially eligible will be contacted by HMRC directly
If a tax return for 18/19 has not yet been submitted the Chancellor has stated that there will be a four week grace period to allow returns to be filed
Your relationship partner is on hand to assist with any queries you may have so please do not hesitate to contact them, we are here to help.
The information was correct at time of publishing but may now be out of date.