Updated: Mar 29, 2020
COVID-19 Support for Self Employed
This 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. PLEASE SHARE TO ANYONE YOU THINK IT MIGHT HELP.
If you need any FREE help on this please contact us at www.comptonfinancial.co.uk (Mortgage and Protection Broker). We want to do our bit during these times.
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You can apply if you’re a self-employed individual or a member of a partnership and you:
- Have submitted your Income Tax Self-Assessment tax return for the tax year 2018-19
- Traded in the tax year 2019-20
- Are trading when you apply, or would be except for COVID-19
- Intend to continue to trade in the tax year 2020-21
- Have lost trading/partnership trading profits due to COVID-19
Your self-employed trading profits must also be less than £50,000 and more than half of your income comes from self-employment. This is determined by at least one of the following conditions being true:
* Having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
* Having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period
* If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.
* If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020.
HMRC will use data on 2018-19 returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way.
How much you’ll get:
You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable):
* 2016 to 2017
* 2017 to 2018
* 2018 to 2019
To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount. It will be up to a maximum of £2,500 per month for 3 months.
HMRC will pay the grant directly into your bank account, in one instalment hopefully by 1st June 2020