Here’s what we know so far: –
A taxable cash grant is available for self-employed individuals for 80% of their profits, up to a maximum of £2,500.
It’s 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 over the 3 previous tax years (2016/17, 2017/18 & 2018/19).
HMRC will use the average profits from the 3 years (2016/17, 2017/18 & 2018/19) in order to determine the size of the grant.
In order to qualify, more than 50% of your income in these periods must come from self-employment.
HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply. If you receive any information and need assistance, please get in touch.
The scheme will cover March, April & May 2020 and the grant will be paid as a single lump sum covering this period at the start of June 2020. It will be extended if needed.
If you have not filed your 2018/19 tax return yet (deadline was 31/1/20) then you have 4 weeks to do so to be eligible for this scheme – please contact me immediately about this.
You should not contact HMRC as HMRC will be using existing information to check eligibility and will invite you once the scheme is operational.
Please note: anyone who pays themselves a salary & dividend through their own company are not self employed and therefore will not be covered by this scheme.
Further details will be released and we’ll update you in due course.
The scheme is also available to members of partnerships.
You can still apply for other support including universal credits & business continuity loans if appropriate to your circumstances.
We understand that this is an ever-changing situation, and we will endeavour to keep you up to date on the latest announcements.
The latest government guidance can be found by accessing GOV.UK coronavirus webpage.
Regards and stay safe,