The government is offering help for those struggling. But HMRC won’t be in touch until mid-May, and no grant will be paid until June, so if you’re struggling, one option is Universal Credit. The HMRC payment will be a grant, not a loan, and you can continue in your self-employed work, or in employment, or voluntary work.
If you are eligible, HMRC will invite you to apply online for a taxable grant worth eighty percent of your trading profits up to a maximum of £2,500 per month. There is a trading profit ceiling of £50,000 (looking at past tax years) with a stipulation that more than half of income comes from self-employment. Otherwise you are eligible if you have:
- submitted a self-assessment tax return for 2018/2019 - submit it by 23 April 2020 if you have not already done so or you will not be able to claim.
- traded in the 2019/2020 tax year (and are still trading or would be if not for coronavirus)
- intend to trade in the 2020/2019 tax year
- have lost profits because of coronavirus
You will receive a taxable grant based on your trading profit over the last three tax years.
Also look into:
- Deferring payment of your July self-assessment payment on account to January 2021
- Deferring VAT payments
- Coronavirus Business Interruption Loan Scheme
- Business rates relief
- Grants if you pay little or no business rates
Your professional body may be able to provide you with guidance on other financial assistance available. Also check your insurers: are you covered for your losses?
For help on this or other related employment law matter, please speak to Emma-Louise Hewitt e.hewitt@sydneymitchell.co.uk or call 0808 166 8860
On business matters, please speak to Roy Colaba r.colaba@sydneymitchell.co.uk 0808 166 8827
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