Cash grants for self-employed – cash grant of up to 80% of your average trading profits, capped at £2,500 per month. This scheme will run for the next 3 months March, April and May, and will be extended longer if necessary.
You are eligible for the grant:-
- if your self-employment income makes up the majority of your total income,
- if you completed a 2019 Self Assessment Tax Return AND
- if you had 2019 trading profits of less than £50,000.
Average profits are calculated using your 2016/17, 2017/18 and 2018/19 figures, or just 2018/19 if you only commenced trading recently. We can easily provide this information to you if we prepared your Returns.
Most generously, if you can continue your trade outside of the ‘lockdown’ restrictions, then you can do so and still claim the grant. There is no requirement to cease work altogether, as with the Job Retention Scheme for furloughed workers under the PAYE system.
HMRC will release a simple online application form in early June 2020, which we can assist you with, once the system is available.
Once the form is processed and checked, HMRC pay directly into your bank account the grant for March, April and May 2020. Obviously there is going to be a delay between now and receiving the grant. To assist with this period, the Government recommend looking at the other reliefs on offer including mortgage holidays, Universal Credit applications (which are being fast-tracked so you receive an upfront payment within days) and the Loan scheme. All detailed elsewhere on this page.
If the scheme is extended, we expect claims to be required on a monthly basis. Therefore we recommend we prepare your 2019/20 Tax Return promptly after April 2020 – so that if/when the form requires more up to date profit figures, you can submit and receive further grants without delay.
HMRC have generously offered to include anyone who has not yet filed a 2019 Return, providing that Return is filed within the next month. If this is you – please contact email@example.com urgently and we can help.
Remember Dean and Gina would be delighted to talk through your individual circumstances and how any of the Covid reliefs (detailed on our dedicated webpage might apply to you. We’re all working remotely at the moment, but are available on our usual contact numbers and emails during normal office hours.