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COVID-19: New self-employment income support scheme announced

COVID-19: New self-employment income support scheme announced

April Foster

This is welcomed news for the self-employed and the key details released so far are as follows:
You can claim a grant of 80% of your average trading profits over the last 3 years, up to a maximum of £2,500 per month for the next 3 months (1 March 2020 until 31 May 2020)
The government pledges the scheme may be extended if needed.

1.   Your self-employment trading profits must be less than £50,000, and more than 50% of your total income comes from self-employment.  

This is determined by at least one of the following conditions being met:
  • Trading profits in the tax year ended 5 April 2019 of less than £50,000 and these profits are more than 50% of your total taxable income OR
  • Your average trading  profits for up to the last 3 tax years ended 5 April 2019 are less than £50,000 and these profits are more than 50% of your average taxable income in the same period. 
2.   You have submitted your 5 April 2019 tax return to HMRC (this was         due for filing by 31 January 2020). 

3.   You traded in the tax year 2019-2020. 

4.   You are trading at the time of making the application or would be         except for COVID-19. 

5.   You intend on continuing to trade in the next tax year 2020-2021.

6.   You have lost self-employment or partnership trading profits as a            result of COVID-19.
HMRC will use the information from your submitted 2018.2019 tax return to identify if you are eligible for the scheme.  If you are eligible HMRC will contact you and invite you to apply on line.
Once your application is processed by HMRC they will inform you how much you will get.
The grant will be paid directly into your bank account, in one lump sum, expected to be in early June 2020.
Please see our FAQs here
We shall keep you informed of any developments as the government releases them.
Please contact your Moore adviser for help and advice on the scheme.