Self-employed Income support – COVID-19, this is the latest update from HMRC as of 6th April, 2020
Who is eligible for self-employed Income Support?
The Government will pay all registered self-employed who have lost income due to the pandemic a taxable grant calculated as 80% of the last three years average monthly trading profits. This is up to a maximum of £2500 per month, provided the following conditions are met:
- That a self-assessment return for 2018/19 has been filed. If you have not filed the return the deadline is 23 April 2020, after which time your claim will be invalid
- That you have continued to trade in 2019/20 and that at the time of application you are or would still be trading except for Covid-19 and that you intend to continue to trade once the restrictions have been lifted
- That you have lost trading profits due to the virus
- Annual profits for 2018/19 must not have exceeded £50,000 and that the trading profit must represent more than 50% of your taxable income or that if average profits did not exceed £50,000 these profits must still constitute more than 50% of your average taxable income
To identify who is eligible for the grant, HMRC will use the data from 2018/19 returns already submitted. They will also risk assess any late returns submitted before 23 April 2020.
When calculated, they will pay the grant in one installment direct into a bank account.
The scheme will only be accessed through www.gov.uk.
Any contact from any third-party offering assistance should be treated as a scam and under no circumstances should bank or credit card details be given to anybody other than HMRC.
If in doubt, please check with us.
If you are in receipt of tax credits the grant must be included in your income. Although the grant is non-repayable, it is still treated as income for both tax and benefit purposes
How do you claim?
HMRC will contact eligible claimants direct. There is no point calling them to claim.
For Small Business Advice please see our previous blog.
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