As we get further into lockdown and the pressure on businesses and individuals starts to increase, we can assure you of our continued commitment to provide as much advice, guidance and support as you need to help you to come through this as best as you possibly can. Communication is imperative and we will ensure that we disseminate relevant and up to date information as it emerges from Government.
Self- employment Income Support Scheme – Update
In order for the scheme to be available to affected self-employed individuals, they must have trading profits of no more than £50,000 which make up more than half of their total income for either the 2018/19 tax year, or the average of the 2016/17, 2017/18 and 2018/19 tax years.
HMRC have now released guidance as to how they will calculate total income and trading profits for the purposes of the coronavirus ‘self-employment income support scheme’. This guidance can be found here.
The guidance includes useful examples of differing situations, and provides some welcome further clarity.
Previous guidance has also been updated (which can be found here). One clarification being that the profits of a self-employed farmer claiming ‘farmers’ averaging relief’ will be the profits before taking into account such a relief claim.
To be eligible for the scheme you must have submitted a 2018/19 tax return. Those who are late in filing a 2018/19 tax return have until 22 April 2020 to do so. This is only a week away and thus should be a priority for those in this position.
HMRC state that they aim to contact individuals they feel are eligible by mid-May 2020, and will invite them to claim using the online service. HMRC also state that “If you’re unable to claim online an alternative way to claim will be available”.
As previously advised, HMRC state that they will pay the grant directly into eligible applicants’ bank accounts in one lump sum.
If we can help and advise you in any way, please get in touch with your usual RRL Team member, we are working remotely to keep our staff and clients safe and our telephone contact details can be found here. We will respond to emails as usual.
We will provide further updates, as and when further announcements are made and detail/guidance released.