The Chancellor has announced that the government will provide support for those who are self-employed and who have been adversely affected by Coronavirus.
The assistance will take the form of a taxable grant worth 80% of a self-employed person's average monthly profits for the last three years, up to a maximum of £2500 per month.
Who can apply
You can apply if you are self-employed or a member of a partnership, and:
- Have submitted your Self-Assessment Tax Return for 2018/19
- Traded for at least one tax year
- Are trading when you apply, or would be except for COVID-19
- Intend to continue trading in 2020-21
- Have lost trading profits due to COVID-19
How much can be claimed
Provided your profits for 2018/19 are less than £50,000 (or) average profits for the last three tax years, namely 2016/17, 2017/18 and 2018/19 have been less than £50,000, AND these profits constitute more than half of your average taxable income in the same period you will be entitled to claim.
You will receive a taxable grant of 80% of your average trading profits for the last 3 tax years (where applicable).
It will be paid up to a maximum of £2500 per month for three months (with a possible extension as required)
How to apply
HM Revenue & Customs have requested that if you have not already done so, you should submit your 2018/19 Tax Return by 23 April 2020, if you wish to be considered for this grant.
You do not need to apply directly to HMRC, they are going to use the data included on the 2018/19 submitted Tax Returns to identify those who may be eligible for this support. HMRC will then contact you directly in order to request any additional information and to get you to fill out an online form. The money will then be paid into your bank account.
Unfortunately due to the time it will take to analyse the data it could be as late as June before any monies are paid out.
Get in touch
If you require assistance in relation to your tax return and the above grant, please get in touch with a member of our team.