The Government have set up the Self-Employment Income Support Scheme which 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, and potentially longer if required.
In brief, 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.
If you are eligible HMRC will write to you and invite you to apply online.
HMRC have advised that grants will not be paid until June 2020.
Full details of the scheme can be found on the HMRC website: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
Unfortunately, not everyone will fall within the qualifying criteria, but there are other income support & cash flow saving options available:
- Applying for Universal Credit.
- Self Assessment income tax payments due in July 2020 can now be deferred until January 2021.
- The Coronavirus Business Interruption Loan Scheme offers loans that are interest free for 12 months.
- Mortgage providers are offer 3 month mortgage payment holidays.
- If renting, rent payment holidays can be negotiated.
- Some councils are offering council tax payment deferrals.
Please don’t hesitate to give us a call if you want to discuss your options with us – 01273 758882.