Coronavirus Update - Support for the Self Employed
Following calls for a system that provided parity to those introduced for employees in the wake of the Coronavirus outbreak, the Chancellor has this evening announced much-anticipated measures intended to support the self employed workforce.
We are aware that a number of clients have been waiting on this news for some time - we thank you for your patience during what we appreciate has been a concerning period for those affected and hope the announcement comes as welcome news to many.
There is clearly a greater level to detail to follow and the Chancellor has been candid in his remarks that there will be lead time in rolling this out given the relatively complex and bespoke nature of the scheme’s principles and mechanisms.
The key points of the ‘Self Employed Income Support Scheme’ are as follows:
- Offers a taxable grant worth 80% of average monthly profits over the last 3 tax years for those adversely affected.
- Support capped at a maximum of £2,500 per month for an initial 3 month period (to be reviewed thereafter).
- Applies to those with trading profits up to £50,000 per annum.
- Only those already registered for self-assessment are eligible.
- Eligible individuals will be contacted by HMRC who will request completion of a simple online form, so no application process required on the part of the individual.
- HMRC will pay the individual a single lump sum directly covering March, April and May by June at the earliest.
- Those who have not yet filed 2018/19 tax return have 4 weeks to do so in order to be eligible.
- If less than 3 tax returns are available, HMRC will make a calculation based on what has been filed.
- Unfortunately those who have recently become self employed within the 19/20 tax year will not be eligible for the scheme at present.
An important point of note is that only the trading income of self employed individuals is expected to apply for support under these measures – it will therefore not apply to property, dividend or other non-trading income types as commonly reported on self assessment tax returns.
We hope this helps cover the basics of what is another relatively unprecedented support mechanism - there will of course be questions based on individuals’ specific circumstances which we will endeavour to support you with, and as always will seek to provide updates as further information on the implementation of the scheme becomes clear.
If you have any questions regarding this or anything else please get in touch, and for regular updates, announcements and news please check our website (www.dsaprospect.co.uk) and make sure you’re following our LinkedIn page: https://www.linkedin.com/company/dsa-prospect-ltd