In this article we have summarised the measures announced towards COVID-19 support for the self-employed.
The UK Government is to pay 80% of average monthly trading profit taken from self-assessment tax returns submitted over the last three years. This is capped at a maximum of £2,500 per month.
It is not available where:
- Trading profits are above 50,000;
- Other sources of income (for example employment, rental income and dividends) are higher than self-employment trading profits;
- Trading started after 5th April 2019.
How do I apply?
There is no need to apply, HMRC will contact those that it applies to.
When will it be available?
Expected to be accessible before the end of June.
What happens if you’ve done less than 3 years tax returns?
It will be calculated as an average based on whatever you have submitted.
What if you’ve not yet submitted your 2018/19 tax return?
You’re a bit late, but the government has given an extra 4 weeks to get the return submitted for it to be used in the calculation.
Does this apply to landlords?
No, property income is treated as investment income, and is not classed as self-employment.
Does this apply to people who have a Limited Company?
No, only for self-employed individuals.
Full details can be found at https://www.businesssupport.gov.uk/self-employment-income-support-scheme/