Have a question? Like to know more? - Contact us or Call +44-1865 292200 or +44-20 7436 4773, Mon-Fri 8:15am - 5:15pm
Have a question? Like to know more? - Contact us or Call +44-1865 292200 or +44-20 7436 4773, Mon-Fri 8:15am - 5:15pm
3 minute read
The Chancellor Rishi Sunak has finally announced the measures the UK Government is to take, to help self-employed business people cope with the financial impact of the Coronavirus.
Are you eligible ?
The scheme the Chancellor has announced is expected to cover about 95% of current self-employed business people, but there are a number of self-employed who will not be covered. For example directors and shareholders of limited companies who remunerate themselves by way of dividends and salary. The following are also deemed excluded from the scheme:
Further to the above HMRC have clarified the position and suggest if you are self employed or a member of a partnership you can apply if you:• Have traded in the tax year 2019/20
What you will receive ?
For those that are eligible, the Government will pay a grant, in June but back-dated to March of 80% of their average monthly profits for the past three years, or their profits in 2018/19. There will be a cap of £2,500 per month. For Partners the income test will be based on their share of the Partnership profits. This income will be taxable and therefore will need to be shown on individuals 5 April 2021 income tax returns. It will also form part of your income for tax credit purposes. The scheme will be open for an initial three months and will then be reviewed.
When will you receive the money ?
The government have suggested that the system will be open in June 2020 and then payments will be made in a single lump sum payment. There is no indication how long the payment will take to process.
How to apply
For all our clients, we will have all your Tax Return data on our files, so if you are anxious to know if you would be eligible for a payment through this scheme we can calculate the relevant income figures for you. Please get in touch by calling your normal contact point at our firm. If you are not eligible for a payment under this scheme, then you can consider the other “safety-nets” in place such as Universal Credit, interest-free bank loans, payment holidays etc.