Covid-19 Self-employment Income Support Scheme
Government has recently announced the relief package for self-employed individuals and for members in partnerships. Please note to use this scheme if you’re self-employed or a member of a partnership and have lost income due to coronavirus.
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.
Who can apply
You can apply if you’re a self-employed individual or a member of a partnership and you:
• have submitted your Income Tax Self-Assessment tax return for the tax year 2018-19
• traded in the tax year 2019-20
• are trading when you apply, or would be except for COVID-19
• intend to continue to trade in the tax year 2020-21
• have lost trading/partnership trading profits due to COVID-19
Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:
• having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
• having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period
If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return. If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020. HMRC will use data on 2018-19 returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way.
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. HMRC pay the grant directly into your bank account, in one instalment.
You can contact our specialist tax advisor at MJ Support & Co to look into your business affairs and assess if you can apply for the self-employement income support scheme or for any other cash grant available for different sectors.
Why you choose us!
Government Scheme– We will assess if you can apply for the above scheme and support your livings by get advantage of the schemes provided by Government.
Tax Planning – To ensuring meeting all deadlines, we won’t leave it until last minute, when it is too late!
No Penalty Guarantee – We offer systemised accounting and tax advice to enable our clients to meet with HMRC regulations.
Regular Compliance Checks – Offering regular compliance check to meet with the compliance requirements of small businesses and individual landlords.
No Surprise Bills – Call or email your Property Tax Accountant at any time and you won’t get billed for it.
We Make Your Life Easy – Life is beautiful, so when it comes to your tax affairs, we keep things simple and take away the hassle for you.