COVID-19 Chancellor gives support to millions of self-employed individuals

self employed income support scheme

This Scheme allows self-employed individuals to claim a TAXABLE grant of 80% of their trading profits up to a maximum of £2,500 per month for the next 3 months (subject to extension).

Who is it for;

You can apply if you’re self-employed or are in partnership &

  • You have submitted your self assessment tax return for the tax year 2018/19 and were a trading self employed in the tax year
  • Currently trading
  • Intending to trade in the current tax year
  • Had a negative impact of COVID-19 on the business
  • Your self-employed trading profits must also be less than £50,000 and more than half of your income comes from self-employment.

How much you will get? 

You will be eligible for the grant of up to 80% of your average trading profits of the previous 3 tax years; i.e. 2016/17, 2018/19, 2018/19.

To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount. The upper cap to the grant is £2,500/month.

What to do;

You do not need to do anything. HMRC will contact you if you’re eligible and invite you automatically to apply for the scheme.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020 in order to be eligible for the scheme. Please contact us if your tax return for 2018/19 remains outstanding.

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