Taxable grant of 80% of average monthly profits, up to a maximum of £2,500/month
The UK Government announced today a grant to help self-employed to help them cope with the financial impact of Coronavirus. The Coronavirus Self-Employment Income Support Scheme, as it is called, is worth 80% of the self-employed persons average monthly profits over the last 3 years, up to a maximum of £2,500/month. The grant is taxable. The grants will be available for at least 3 months.
Grant not available to everyone
On the .gov.uk web-site https://www.gov.uk/government/news/chancellor-gives-support-to-millions-of-self-employed-individuals it says that the scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19. To qualify, more than half of the person’s income in these periods must come from self-employment. To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply. The income support scheme will cover the three months to May. The intention is that grants will be paid in a single lump-sum instalment covering all 3 months and will start to be paid at the beginning of June.
Not for people that work through a company
Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.
Wait for HMRC to contact you
HMRC say that individuals should not contact HMRC now. Instead, HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply.
As ever, please feel free to contact any member of the team if you need more information.
Taxable grant of 80% of average monthly profits, up to […]