Self-employment Income Support Scheme
Financial help is available for self-employed individuals and partners in the form of a grant. However, eligibility is limited to those who:
- traded in the 2018/19 tax year and submitted their 2018/19 tax return no later than 23 April 2020;
- traded in 2019/20;
- intend to continue to trade in 2020/21;
- were adversely affected by the Covid-19 pandemic; and
- have profits for 2019/19 of £50,000 or less or average profits for 2016/19 to 2018/19 of £50,000 or less.
The scheme is targeted at those who derive the majority of their income from self-employment and a claim can only be made where self-employment income is at least 50% of total income.
HMRC have written to those who they believe are eligible.
The grant is equal to 80% of average monthly profits for a period of three months, capped at £2,500 per month. The maximum grant is therefore £7,500. Average profits are those for the three tax years 2016/17, 2017/18 and 2018/19, as returned on the self-assessment tax return. If the trader has not traded throughout this period, the calculation is adjusted.
Individuals can make a claim at any time on or after the date given to them by HMRC, which was between 13 and 18 May 2020. Claims had to be made online.
While claims cannot be made by agents on behalf of self-employed clients, we can advise you on how to make a claim and on what you should receive.
Deferring July 2020 self-assessment payment on account
Under self-assessment, the second payment on account for 2019/20 is due by 31 July 2020. This payment can be deferred and paid instead by 31 January 2021, with any outstanding balance due for 2019/20. The first payment on account for 2020/21 will be due as normal by 31 January 2021.
As long as the full amount due for 2019/20 is paid by 31 January 2021, HMRC will not charge interest and penalties on the deferred payment on account.
Taxpayers who are having difficulties meeting other tax payments in respect of which there is not a specific deferral option should contact HMRC’s Payment Support Service to see if they can pay any outstanding liability in instalments.
Please talk to us at ESB Accountancy to discuss how your business can comply with the new tax, finance and accounting laws – with several decades of financial experience here in Gloucestershire you can either ring us now on – email us on email@example.com or click the Contact Us buttonor please fill the form at the bottom of the contact us page.