Self-employment Income Support Scheme
The Government has announced a Self-employment Income Support Scheme to help some self-employed individuals (including members of partnerships) who have lost income during the Covid-19 (“Coronavirus”) pandemic.
Here is a link to the Government website page with their advice:
The main details available to date are:
- This scheme will allow individuals to claim a taxable grant worth 80% of trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.
- The scheme will be available to self-employed individuals who:
- have submitted a Self Assessment tax return for 2018/19
- traded in the tax year 2019/20
- are trading at the time of applying, 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
- The scheme is limited to individuals meeting at least one of the following conditions:
- Trading profits/partnership trading profits in 2018-19 were less than £50,000 and these profits constitute more than half of the individual’s total taxable income
- Average trading profits in 2016-17, 2017-18, and 2018-19 were less than £50,000 and these profits constitute more than half of average taxable income in the same period
- If trading started between 2016 and 2019 HMRC will only use those years for which a Self-Assessment tax return was filed.
- HMRC are allowing a catch up by 23 April 2020 if a 2018/19 tax return has not yet been submitted.
- The amount of the taxable grant will be calculated as follows:
- The grant will be a monthly amount based on 80% of the average trading profits of 2016-17, 2017-18, and 2018-19.
- The average will be calculated by adding the total of the trading profit for these 3 tax years and dividing by 3.
- This will be adjusted where trading does not cover this 3 year period
- The maximum grant will be £2,500 per month.
- The grant will be payable in one instalment directly into the individual’s bank account.
- The Government have said that HMRC will contact eligible individuals and invite them to apply online through Gov.UK. The Chancellor said in his speech that the scheme should be available no later than the beginning of June.
We will continue to monitor Government announcements and provide updates as the situation evolves over email, on our website, LinkedIn and Twitter account.
Please contact your BGM advisor or email email@example.com if you would like any assistance.