Self Employment support scheme
Further to todays announcement here is a reminder of the new measures introduced to help the self employed who are suffering because of the pandemic.
- direct cash grant for the self employed of 80% of their profits, up to £2,500 per month for at least three months
- The scheme will be 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 from 2016-17, 2017-18 and 2018-19.
- To qualify, more than half of their income in these periods must come from self-employment.
- To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply. HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply.
- There is nothing you need to do – HMRC will contact you if you are eligible.
- The grants wont be available until June
- Grants made under the scheme will be paid in one lump sum in June. Eligible individuals can continue to trade and do not need to stop work to receive the grant. Those unable to trade and are struggling financially are advised to apply for Universal Credit, and to approach their mortgage provider for a three-month mortgage holiday.
- Nothing yet measured about Owner Managed Businesses trading via a Company or those who draw their income via a mix of a small salary and dividends. (An Owner Managed Business (or OMB) is any business, but a legal entity Company other than a sole trader or partnership. Where daily management rests on the shoulders of the people who own the business, unlike large corporate organisations where the line between management and ownership is distinct.) We will release a statement to Directors of Limited Companies in a few days time.
- People given four weeks now the opportunity to file their tax return for the tax year 5th April 2019 who have not yet done so already.
- If you do not have a full three years history – HM Revenue & Customs know this and will use what they have got.
- You can continue to work self employed whilst you receive grants.
- This does also apply to Partnerships.
We will be releasing a statement of our understanding to Directors of owner managed Businesses as soon as we have detail on the benefits in place for them.
For the meantime, if you would like an indication of what you can expect from the self employment grant (This is just an estimate) and you are a self employed client of ours – please complete this tool below and we will send this out to you: