To help combat the uncertainty faced by the self-employed as a result of coronavirus, the Chancellor announced the Self-Employed Income Support Scheme. The scheme will allow the self-employed to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 a month.
It will be available for a 3-month period to 31 May 2020 but may be extended.
To qualify, a claimant will need to confirm to HMRC that their business has been adversely affected by coronavirus. We are aware some farmers will have lost trading profits due to coronavirus so we will be discussing the impact on your profits and whether a claim can be made.
HMRC will take into account trading losses incurred over the period concerned when working out the averaged profits. If a person has more than one trade in a tax year then profits and losses from all trades will be added together to work out the trading profit.
If you have made a farmer’s averaging claim, then HMRC will use the profit before the averaging adjustment.
HMRC have confirmed that they will pay the grant directly into the individuals bank account, in one instalment. The grant will be subject to Income Tax and National Insurance contributions.
No claims can be made yet. HMRC aim to have made contact with all eligible taxpayers by mid-May to invite them to make a claim.
Please be aware that there has been an increase in fraudsters sending various scam texts, calls or emails claiming to be from HMRC and offering financial help or a tax refund. Do not reply or click on any links.
Our Payroll and Employment Tax teams are here to assist. If you have any questions or would like some assistance with the grant cliam process, please get in touch with your usual Wilkins Kennedy contact or your nearest Wilkins Kennedy office.
The information in this update is based on our understanding on 17 April 2020. Laws and tax rules may change in the future.
The Chancellor has announced £1.25bn of support for start-up businesses.
Today, 12 May, the Chancellor announced that the Government’s Coronavirus Job Retention Scheme (CJRS) will remain open until the end of October...
Good governance is more important than ever, but this involves us adapting our governance to best fit the circumstances (internal, local and national)...
HMRC have now issued further guidance on how to access the self-employed grant, which has been introduced as a result of COVID-19. Read our latest insight to check whether you are eligible to claim...
Funding Circle, a peer-to-peer lending platform, has announced its addition to the British Business Bank’s list of accredited lenders giving businesses another route to access the Coronavirus Business Interruption Loan Scheme (CBILS).