28 Mar Covid-19 Self-employed Support- What we know so far
EA Assist – Payroll
Our staff are currently working from home to ensure we continue to provide our payroll services. We will continue to work through year end procedures and provide support to clients in these unprecedented times. It has been a busy time for us and we know this will continue for the payroll department. If you need to get in touch the best way is to email us and we can call you back. Please email firstname.lastname@example.org with your enquiry and we will come back to you as soon as we can.
Self-employed – What we know so far.
On Thursday the chancellor announced the much awaited help for those self-employed people or those operating as a partnership. The main criteria are outlined below and include the link to the government website with the current guidelines.
Rishi Sunak made it very clear about applying for this grant – “Don’t call us, we’ll call you if you are eligible’.
What you can do to get a rough idea of what you might receive is to look at your profit for the last three years on your self-assessment tax return – calculate your average annual amount for profit, then work out your monthly average profit, 80% of this is what you may get paid if you are eligible.
The grant will be paid in June, back dated. Its good practice to put money away every month and with the payment on account for July 2020 now postponed until January 2021 you can use those funds until you receive your grant.
It must be made clear the grant is taxable so be mindful to keep a percentage back for tax due for the 20/21 Tax year.
The scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.
- Self-employed individual or a member of a partnership
- Must have submitted personal tax return for 18/19 tax year – have until 23/04/20 to submit these
- Have been trading in 19/20 and would be except for COVID-19
- Intend to trade in 20/21
- Have lost profits due to COVID-19
- Have profits less than £50k determined as follows
One of the following must be true:
- Profit in 18/19 is less than £50k and makes up more than half of your income
- Average profit over 16/17, 17/18 & 18/19 is less than £50k and makes up more than half of your income
How much you will get
If you are eligible the grant will be 80% of the average profits over 16/17, 17/18 & 18/19 up to a maximum of £2,500 per month.
How to apply
You cannot currently apply for the scheme, HMRC will contact you if you are eligiable you will be contacted. Individuals should not contact HMRC as this will delay the process.
HMRC have said the scheme will be in place by the end of June 2020, I understand this is a long period to be without income. If you believe you will struggle with cash flow over this period it would be worth looking at the business interruption loan scheme that the government have put in place.
This is all the information currently available to us but we will do our best to answer any questions you may have.
Link to government full details here: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
If you have any questions regarding your payroll please get in touch with us by emailing to email@example.com.