GOVERNMENT GRANT TO HELP THE SELF-EMPLOYED DURING THE COVID-19 PANDEMIC

As I’m sure you’re already aware, on Thursday 26 March 2020 the Chancellor, Rishi Sunak, announced a new grant for the self-employed during the Coronavirus pandemic.

 

Self-employed workers will be able to apply for a grant worth 80% of their average monthly profits, up to a maximum of £2,500 a month. However, at the moment this payment will not begin to arrive until the start of June!

 

You can apply for the grant if:

 

  • you are self-employed or a member of a partnership
  • you have submitted your personal tax return for the 2018/2019 tax year
  • you have traded in the 2019/2020 tax year
  • you are trading when you apply (or would be except for COVID-19)
  • you intend to continue to trade in the 2020/2021 tax year
  • you have lost trading/partnership trading profits due to COVID-19
  • your trading profits are less than £50,000
  • more than half of your income comes from self-employment

 

HMRC will use data from your 2018/2019 tax return to identify whether or not you are eligible. 

 

To work out your average income HMRC will add together the total trading profits from your last three year’s tax returns (2016/2017, 2017/2018 and 2018/2019).  This total will then be divided by 3 and used to calculate your monthly amount, which will be paid directly into your bank account.

 

If you are eligible for the scheme HMRC will contact you by mid-May and invite you to apply online (NB the scheme is not yet open for applications).

 

Further details can be found in the link below, along with details on other help you may be able to get (such as Universal Credit and the Business Interruption Loan Scheme):

 

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

 

Please get in touch if you need help or advice with this. 

 

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