COVID-19 Update: Self-Employed Help Available – Highlight

In Accountancy, News by Caroline

Further to our update of 7th April, we have now done some worked examples from a calculator sent to us by one of our training partners. These examples give you an illustration of what we think will happen, but you will appreciate that this is changing on a daily basis.

You could have more than £50,000 profit in 2018/19 or more than 50% of other income, but as long as the average profit is less than £50,000 you qualify; this rule may change.

We have included 3 worked examples:

  • Example 1: one for Qualifying grants – Click here for Self Employed Example 1
  • Example 2: one for a claim where the self-employed income is below the 50% required – Click here for Self Employed Example 2
  • Example 3: one for where income for 2018/19 is higher than the £50,000 but because the income from the prior 2 years is lower, this can still be claimed – Click here for Self Employed Example 3

The remaining information that we have already sent you stays unaltered as follows:

Self-employment Income Support Scheme 

  • Self- employed profits must be less than £50,000
  • Claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. (This may be extended if needed)
  • The scheme won’t likely come in until 1 June 2020
  • You can apply if a self- employed individual or a member of a partnership
  • You need to have submitted a self-assessment tax return to 5 April 2019
  • Chancellor has given those who have yet to submit a 2019 return a further 4 weeks to submit these so that they qualify (so filed by 23 April 2020)
  • You need to have traded in 2019/20
  • As long as you are still trading you can still apply and are intending to still trade
  • Once applied your money will be paid into your bank
  • Not able to be applied for yet and HMRC will contact you if you are eligible for the scheme NB: We think that there may have to be some declaration made to enable HMRC to pay out but we will let you know once we have an update
  • Tax years taken into account include 2016/17 – 2018/19
  • Taken from an average of the income for the 3 years

Please note that this is subject to further change, but if you need any help then please contact our Tax Manager TOM HAMILTON on his email address t.hamilton@braccountants.co.uk

Richard and Ben