This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 a month. It will be available for 3 months, but may be extended.The grant will be subject to Income Tax and National Insurance contributions but does not need to be repaid.You can make a claim for Universal Credit while you wait for the grant. You should record the grant as part of your self-employment income, and it may affect the amount of Universal Credit you get. This will not affect Universal Credit claims for earlier periods.If you receive the grant you can continue to work or take on other employment including voluntary work.If you have other employment as a director or employee paid through PAYE your employer may be able to get support using the Job Retention Scheme.
You can claim if you’re a self-employed individual or a member of a partnership and you:
You will need to confirm to HMRC that your business has been adversely affected by coronavirus. HMRC will as usual use a risk based approach to compliance.Your trading profits must also be no more than £50,000 and more than half of your total income for either:
If you have not submitted Self Assessment tax returns for all 3 years find out HMRC will work out your eligibility.HMRC will use data on the 2018 to 2019 tax returns already submitted to identify those eligible.HMRC will not take into account any changes made to submitted returns after 26 March 2020, when working out your eligibility or amount of the grant.Find out how HMRC works out your total income and trading profits for the Self-employment Income Support Scheme.
You’ll get a taxable grant based on your average trading profit over the 3 tax years:
To work out the average trading profit HMRC will add together your total trading profits or losses for the 3 tax years then divide by 3.
HMRC will work out your average trading profit based on continuous periods of self-employment, which will be either:
The grant will be 80% of your average trading profit, divided by 12 which will give a monthly amount. You will be paid this or up to a maximum of £2,500 a month, whichever is lower.HMRC will pay the grant directly into your bank account, in one instalment.
You cannot make a claim yet. You do not need to contact HMRCHMRC will aim to contact you by mid May 2020 if you’re eligible for the scheme, and invite you to claim using the GOV.UK online service.If you’re unable to claim online an alternative way to claim will be available. HMRC will update this page with more information soon.PLEASE NOTE: Unfortunately, HMRC have announced that the Self-employed cannot ask their Accountant to make the claim on their behalf. To make the claim you will need to ensure that you have your Government Gateway account details.
The government is also providing the following help for the self-employed:
The Business Hut Ltd continue to monitor the development of COVID-19. As always, we’re here to answer any questions and support you throughout. Please don’t hesitate to contact the team if you would like to discuss anything with regards to COVID-19 support on 01858 289189.We will adhere to guidance by local, national and international authorities as part of our commitment to minimise the risk to our staff, clients, visitors and the wider community.Thanks for stopping by, The Business Hut Team