Financial Support for the self-employed
Shortly after 5pm this evening, the Chancellor Rishi Sunak announced the following financial support package for self-employed individuals:
- Early guidance indicates that more than 50% of Claimant’s 2018/19 income needs to be derived from self-employment to qualify;
- Grant support of UP TO £2,500 per month to those who are self-employed and completed a tax return for 2018/19;
- Level of support to be 80% of average monthly profits over past three years up to cap of £2,500 per month;
- Grant support will be taxable income;
- Scheme open to those with trading profits of less than £50,000 per annum in 2018/19 or less than £50,000 on average in last three tax years;
- Cash will not be paid out until beginning of June. First three months to be paid out “in one go” according to the Chancellor speaking this afternoon;
- Extension of four weeks from today for self-employed to file outstanding 2018/19 tax return;
- No application process; HMRC will contact you to confirm that you are eligible and to confirm support being paid;
- Only those who are already in self-employment and who have a tax return for 2019 will be eligible; and
- You can claim this grant AND continue to do business, subject of course to the COVID-19 restrictions in place.
Gildernew & Co. Ltd
26 March 2020
This is initial guidance based on the Chancellor’s statement this afternoon. Detailed guidance is not yet published -we will share it once it becomes available. We are therefore unable to guarantee any aspect of this bulletin until we have sight of the detailed guidance. Consequently, we accept no liability for any action taken as a result of this communication.
Posted on March 26, 2020