Chancellor Rishi Sunak today announced more measures, these aimed at supporting the millions of self-employed workers. Many of our clients are self-employed and are worried that no support had been forthcoming for them.
In a nutshell, it was announced that individuals would qualify where self-employment income accounted for more than 50% of their total income and their trading profit was under £50,000 for 2018-2019 tax return or their average trading profit was under £50,000 for 208-2019, 2017-2018 and 2016-17 tax returns.
If you qualify, you will be eligible for a cash grant of 80% of your average monthly profit over the last three years up to a maximum of £2500 per month. The Chancellor did clarify that if you don’t have three years information as you have only been self employed for a year or two, it will be an average of however many years you have submitted. You will be able to claim for three months, March, April and May.
You will be able to apply directly for the grant using a simple online form, and the payments will be made directly into your bank account. BUT you should not contact HMRC now. They will use existing records to check eligibility and will invite you to make an application once the scheme is operational.
If you are eligible and do get a invitation to apply but are not sure how to get through the process, give us a call and we can guide you through the process. Obviously we have not seen the online form so have no idea what they are going to ask for as yet.
Small limited company directors who pay themselves through a small salary and dividends will not qualify, but they will be able to make a claim for their small salary through the Coronavirus Job Retention scheme. In most cases, this will be 80% of £719pm so a claim for £575.20.
For more information, CLICK HERE for the Gov.uk guidance page giving further details about the scheme.
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