The Chancellor has just announced a support package for self-employed individuals as part of the Governments pledge to support self-employed individuals.
Self-employed workers who are impacted by the COVID-19 disruptions will be able to apply for a grant of 80% of their monthly profit calculated over a 3-year average (capped to £2,500). Where the individual has not been registered for self-assessment for 3 years, HMRC will consider the tax returns which have been submitted to determine the claim.
The money will be paid in a single lump sum but will begin to arrive at the start of June 2020. However, those who have more than £50,000 in trading profits will not be eligible. Only those who are already in self-employment can claim. Individuals cannot backdate their registrations to claim for the grant.
The chancellor has confirmed that HMRC will automatically start contacting individuals who are registered for self-assessment and have a unique taxpayer reference (UTR) and will ask individuals to fill out a form to claim the grant. These individuals will need to have either submitted their 2019 tax returns and if they haven’t, they can submit the return within the next 4 weeks to be eligible.
In the meantime, the Government has provided other avenues of support for businesses who are impacted by the COVID-19 crisis. Please see here for details.
Additional information can be found here:
Please note this is the guidance as we understand at the time of the announcement. As you are aware, the information is changing on a daily basis and we cannot be held responsible if the advice or guidance changes or if our interpretation does not subsequently prove to be correct.