Covid-19 update for the self-employed

The Chancellor has this evening announced a scheme to aid the self-employed at this difficult time.  The main points to make you aware of are as follows:

• The government will be making available a taxable grant to self-employed workers.

• The grant will be for up to 80% of your average net monthly earnings over the last 3 years, based on the figures in your personal tax returns for 2016/17, 2017/18 and 2018/19, up to a maximum of £2,500 per month.

• This is only available if your annual income from self-employment is below £50,000 per year.

• The grant will be backdated to March 2020, and will be available for at least 3 months.

• HMRC are setting up a system to enable to make the claim and this should be available by June.

• HMRC will contact anyone who qualifies for this grant, and you will be required to complete and submit a form.

• A lump sum will then be deposited into your account for the 3 month period.

• You can receive this grant even if you are still able to work.

• The grant will need to be declared in the appropriate tax return and taxed as income.

• The grant is only available if your self-employed income makes up at least 50% of your annual income.

• HMRC are allowing those who have not yet submitted there 2018/19 tax return (which was due by 31st January 2020), 4 weeks to get their return submitted to enable them to make the claim for the grant.

• If you were not self-employed prior to 5th April 2019 you will not be able to make a claim.

• You are still able to make a claim for Universal Credit where applicable.

If you require assistance with making this claim or have any questions please don’t hesitate to Contact Us.

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