As I write this, the Chancellor Rishi Sunak is still speaking so we think some of the details will need to be clarified but he has just announced the long-awaited details of his support for the self-employed during this coronavirus crisis.
Anyone who submitted a self-employed tax return for the 2018/2019 tax year and whose trading profits were less than £50,000 will be able to claim a taxable grant of 80% of their average monthly profits over the last three years up to a maximum of £2,500. They must have made a majority of their income from self-employment and following a question from the press, if someone hasn’t been self-employed for that long, the figure will be calculated based on profits for however long they have been trading.
Anyone who has become self-employed recently so didn’t submit a 2018/2019 tax return aren’t going to be included in the scheme and so will have to reply on the measures around Universal Credit as previously announced. Anyone who should have submitted a return before the deadline in January now have four weeks to get their return in to be included in the scheme.
Self- employed people are allowed to continue doing business as well as being able to claim. HMRC will be getting in touch will all those who are eligible, and payments are anticipated in June, backdated to now, so they will get a lump sum payment in a few months time.
As always, please get in touch if you have any questions but do bear with us as we are dealing with lots of queries from employers putting employees on furlough as well as individuals not sure what to do in the current situation.