Do you meet the following criteria?
• Submitted your Self Assessment tax return for the tax year 2018-19, or will do so by 23rd April. (If you have returns for 2017-18 and 2016-17 they will also be used to assess your average tradable profits.)
• Traded in the tax year 2019-20.
• Are trading when you apply, or would be except for COVID-19.
• Intend to continue trading in the tax year 2020-21.
• Lost trading profits as a result of coronavirus.
YES… then are your self-employed trading profits less than £50,000? You may be eligible for the Self Employed Income Support Scheme if you:
• Have average tradable profits over the last three years of below £50,000 or your tradable profits for 2018-19 were below £50,000
• Earn more than 50% of your income from self employment.
You can claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.- 3.8 million will benefit from this scheme, but some exclusions apply: company director’s dividends, those who earn more than £50,000 and those whose other income makes up more than 50% of their earnings.
Can be accessed in full at a rate equivalent to Statutory Sick Pay, but you must have savings below £16,000.
Tax Return Deferral
June tax return and payment deferred to January 2021.
Proposed changes to IR35 have been postponed to 2021
The government announced on 17th March that the reform to the off-payroll working rules (commonly known as IR35) – that would have applied for people contracting their services to large or medium-sized organisations outside the public sector – will be delayed for one year from 6th April 2020 until 6th April 2021. Businesses and individuals do not need to take any action.
Hardship Loan Scheme
Contact your local authority about a hardships loan scheme, as many are setting them up for local residents, small business owners and the self-employed.
For more details on any of these government schemes – please see GOV.UK or your local authority website.