Eligible self employed people will be able to claim a second and final grant in August. This will be a taxable grant worth 70% of their average trading profits for three months, paid in a single instalment and capped at £6,570 in total.
More information on this second claim will be made available on 12th June.
What is the scheme?
The government in the UK has introduced the Self-Employment Income Support Scheme to help those who are self-employed during the Covid-19 lock down.
The scheme will allow you to claim a taxable grant of 80% of your average trading profits over the last 3 years. You can receive a maximum of £2,500 a month for 3 months and you should receive a lump sum probably in June. This scheme may be extended depending on the course of the virus.
HMRC will make the calculation starting with the information included in your 2019 Self Assessment Return. If you have not yet submitted your 2019 Return, you have until 23rd April to do this.
HMRC will contact you if you are eligible and invite you apply online.
There is no requirement for you to stop working or stop being paid under this scheme.
Be careful! This will be a great opportunity for scammers to contact you acting as HMRC. HMRC will not ask you for details of your bank account via text, email or phone call and anything from them should have your tax reference number on it.
Other measures in place are:
- Deferral of the July 2020 Income Tax payment.
- Deferral of the June 2020 VAT payment
- Grants for businesses paying little or no business rates.
- Increased amounts of Universal Credit
- Business interruption loan schemes.
If you have any questions or would like more information, please contact us here