The Government has announced a new Self-Employed Income Support Scheme:
The government will pay self-employed people a taxable grant worth 80% of their average monthly profits over the last three years, up to £2,500/month
This will only be open to those people who :
Have trading profits of up to £50,000
Make the majority of their income from self-employment
Submitted a 2019 tax return
If you are eligible, HMRC will contact you with an online form, then pay this grant direct to you. HMRC are urgently working urgently on this and expect grant to be available in June.
What we understand so far, and other points to note
If you were late submitting your 2019 tax return, you have 4 weeks to submit this.
If you do not have three years’ worth of accounts, then the number of years you do have will be used. But if you have at least three years, it will be averaged over the three years.
You can also access the business interruption scheme.
The welfare system has been changed so you can access Universal Credit.
July 2020 payments on account deferred until January 2021.
Directors with low salary and dividends are unlikely to qualify.