Advice for the self-employed during the Covid19 Crisis ( Updated 31 March 2020 )
In this crisis the Government have a plan to support everyone young and old, employed and unemployed. It seems that the self-employed are a bit of an anomaly all on their own. When the UK get a high unemployment rate the Government seem to encourage people to start up their own businesses with tax teasers, but now the self-employed are getting help in hand with everyone else, are they are going to pay for it later.
How the self-employed are being assisted by the Government?
Self-employment Income Support Scheme
“Self-employed people are a crucial part of the UK’s workforce who’ve understandably been looking for reassurance and support during this national emergency.”
Who Is Eligible For The Grant Scheme?
- if you are part of a partnership or self-employed
- you are working or not at this time
- you have returned a self-assessment tax form for 2018-2019
- traded in the year tax year 2019-2020
- intend to trade next year 2021
- trading profits are less than £50,000
- trading profits average less that £50,000 for the years 2016-17, 2017-18 and 2018-19
- these profits are more than 50% of your taxable income for the same period
- only the years that you have filed a Self-Assessment tax for will be taken into consideration.
Who Is Not Eligible For This Scheme If?
- If you started self-employment after March 2019
- you have not filed a self-assessment form for the year 2018-19
- your taxable trading profit is more than £50,000 per year 2019-19
- you have an average of £50,000 or more trading profit averaged over the last 3 years 2016-17, 2017-18 and 2018-19.
How Much Can You Claim?
You will receive 80% of your average trading profits for the Years 2016-17, 2017-18 and 2018-19. There is a Maximum of £2,500 per month for 3 months. This will be assessed again in the future and will be paid direct into your bank account.
How Do I Apply For The Grant?
The payment is automatic you do not need to do anything at all, you will be notified to how much you are entitled to and the payment will be paid directly to you the earliest April 2020 ( This is the earliest and may slip to a later date to be confirmed).
The HMRC will not ask for any bank details.If you get a Text or e-mail asking for your details to apply for this grant it is a scam.
At the end of this crisis I hope the Government will find a way to keep the self-employed going and encourage new businesses as the people who have lost their jobs because of this Covid19 epidemic seek new opportunities in their lives.
I would not like to be in the Governments shoes they have an incredibly hard job and balancing act to do, and for one think they are doing a great job.
Businesses will change for ever.
“By failing to prepare, you are preparing to fail.”
By Benjamin Franklin