On Thursday 26th March 2020 the Government set out it’s measures to support the self-employed and have lost income due to coronavirus. You should use this scheme if you’re self-employed or a member of a partnership and have lost income due to coronavirus. The scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months.
To be eligible to apply to join the scheme you must:
- 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
- trading profits must also be less than £50,000 and more than half of your income come from self-employment (guidance on this measure is provided on the gov.uk website)
How much you will receive will be calculated as 80% of of the average profits from the tax years (where applicable):
- 2016 to 2017
- 2017 to 2018
- 2018 to 2019
The payment will be up to a maximum of £2,500 per month for 3 months. Payment of the grant will be direct to your bank account in one instalment.
This scheme is not yet open for applications. Once open, you will be contacted directly by HMRC if you are eligible and you will be invited to apply online. Please do not contact HMRC in advance of the scheme launch.
The government is also providing the following additional help for the self-employed:
- deferral of Self Assessment income tax payments due in July 2020 and VAT payments due from 20 March 2020 until 30 June 2020
- grants for businesses that pay little or no business rates
- increased amounts of Universal Credit
- Business Interruption Loan Scheme
For more information on different provision of support from government due to coronavirus check out our summary here.