27-03-20 COVID-19 Update – Self-Employed

Following the government’s announcement for help for the self-employed, this scheme will allow you to 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.  This assistance is only due to persons whose Average Net Profit is less that £50,000.00

How to apply

You cannot apply for this scheme yet.

HMRC will contact you if you are eligible for the scheme and will invite you to apply online.

Individuals do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.

How much you’ll get

You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable):

  • 2016 to 2017
  • 2017 to 2018
  • 2018 to 2019

To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable) and use this to calculate a monthly amount.  It will be up to a maximum of £2,500 per month for 3 months.  They will pay the grant directly into your bank account, in one instalment.

Also, the government has said any payments on account due on the 31st July 2020 may be deferred until 31st January 2021. The deferment is optional. If you still want to pay your second payment on account on 31 July, you can do so.

HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of COVID-19 and have outstanding tax liabilities.

If you have missed a tax payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 0159 559 and they will be able to assist you. 

In the short term while waiting to hear from HMRC and you have no work or income, then you can start an application for Universal Credit from HMRC.

By |2020-04-15T11:26:18+00:00March 27th, 2020|Covid-19|0 Comments

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