May 1st Update: Visit here for more information: https://www.gov.uk/guidance/how-different-circumstances-affect-the-self-employment-income-support-scheme
The Government will pay self-employed people, who have been adversely affected by the coronavirus, a taxable grant worth 80% of their average monthly profits over the last 3 years, up to £2,500 per month.
This will be open for at least 3 months across the UK, extended if necessary.
You’ll be able to claim these grants and continue to do business. The Government is covering the same amount of income as they are for furloughed employees, who also get a grant worth 80%. That’s unlike almost any other country, making this scheme one of the most generous in the world.
It’s only open to those with trading profits up to £50,000, who make a majority of their income from self-employment. To minimise fraud only those already in self-employment, who have a tax return for 2019 can apply.
95% of people who are majority self-employed will benefit from this scheme. HMRC are working urgently, they expect people to access it no later than the beginning of June. If eligible, HMRC will contact you with an online form, they pay the grant straight to your bank account.
To make sure no one who needs it misses out on support, they have decided to allow anyone who missed the filing deadline in January, four weeks from today to submit their tax return.
The Government know self-employed people are struggling right now, they’ve made sure:
- You can access the business interruption loans.
- Income tax payments due in July can be deferred to the end of Jan 2021.
- Changed the welfare system so you can access Universal Credit in full.
Please read the Letter attached below for more information
I have also had a lot of correspondence about guidance for Limited Companies
Those running a limited company and paying themselves via dividends don’t qualify for the self-employment income support scheme. People who are a director of their own company and paid through PAYE may be able to get support via the Government’s job retention scheme.
I note that Martin Lewis (of MoneySavingExpert) has released a comprehensive video on this - as a disclaimer, please note this is not Government guidance however I think you might find it helpful - click HERE to watch via Facebook
