Today we’re dedicated to exploring the topic of Self-Employment;
Updated: 7 May 2020
At Partner Accountancy, we’re dedicated to staying abreast of COVID-19 UK Government financial updates, developing policies and guidelines. By informing our practice and clientele, we create practical dialogues that provide information, enabling smart choices.We’re here to help you make sense of these new developments, with support as you navigate new waters. Whether you’re an employee, director, share-holder or business owner, you can contact us to figure out what’s best for your situation – we’re here for you!
Who is eligible?
The scheme is open to those who are self-employed, or partners in partnership, and who:
- Have trading profits under £50,000;
- Have over 50% of their taxable income from self-employment for the tax year 2018/19 (or the average of the 3 years)
- Have lost trading profits due to COVID-19;
- Submitted a 2018/19 income tax return. -Those who have not yet submitted a 2018/19 tax return must do so by 23 April 2020 as HMRC will use self-employment data from that year’s returns to assess eligibility;
- Traded in the 2019/20 tax year;
- Are trading at the time of application or would still be trading but for the effects of the pandemic;
- Intend to continue trading next tax year (2020/21).
This therefore excludes anyone who has started trading in the tax year 2019/20, this was done intentionally as a measure to minimize fraudulent claims.
How much can you claim?
The taxable grant will be up to 80% of average monthly profits, capped at £2,500 per month. It will be paid as one lump sum for the three months covered by the scheme.
The average will be taken over three tax years – 2016/17, 2017/18 and 2018/19.
You can start making your claims from 13 May 2020, you must do this directly with HMRC, unfortunately accountants are not able to do this on your behalf.
What other support is available?
Other support generally takes the form of deferment or loans.
OUR CLOSING NOTE
If you’re self-employed, and would like some strategic support, please feel welcome to contact us. We are here to help you get accustomed to this new terrain, in consideration of COVID-19 and a new working context.
PARTNER ACCOUNTANCY IS HERE TO HELP
The P.A. Team