Covid-19 What help is available to the self-employed?

The government have announced how it plans to support Britain’s five million self-employed workers throughout the Covid-19 pandemic.

The scheme will allow self-employed workers to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 per month for the next 3 months.

Like the Job Retention Scheme this may be extended if needed.

Who can apply?

You can apply if you’re a self-employed individual or a member of a partnership and you:

 

  • have submitted your Income Tax Self-Assessment tax return for the tax year 2018-19
  • traded in the tax year 2019-20
  • are trading when you apply, or would be except for COVID-19
  • intend to continue to trade in the tax year 2020-21
  • have lost trading/partnership trading profits due to COVID-19
  • Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:
  • having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
  • having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period

 

If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.

For more information the scheme and to find out how to apply use the link below to visit the Government website.

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