The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.
Are you Self Employed?
Self employed individuals are eligible for a grant representing up to 80% of their average profits, if they meet the following criteria:
- they submitted a self assessment tax return for 2018/19
- their business traded during 2019/20
- they intend to continue trading in 2020/21
- their business is continuing to trade , or would be except for coronavirus
- their trading profits are less than £50,000 and represents more than half of their taxable income
- check trading profits declared on the 2018/19. If this amount is less than the threshold and makes up more than half of income, this condition is met
- if not, check whether average profits from 2016/17 to 2018/19 is less than the threshold and makes up more than half of income during this period. If it is, the requirement is met
- they have lost trading profits due to coronavirus.
How much will they be paid?
Individuals will receive a taxable grant which is 80% of their average profits from 2016/17 to 2018/19. If they became self-employed during those years, HMRC will use the average for the years they submitted returns for. The maximum amount is £2,500 per month for three months.
How do you apply?
HMRC will contact the individual if they are eligible for the scheme and invite them to apply online.
Are you eligible for the Scheme?
Contact us today for an appraisal on whether you are eligible for the scheme and we will be happy to assist with calculating how much you should expect to receive.