Self-employed Grant
Who can get the Self-Employed grant?
Sole traders or partners in a trading partnership, but not director/owners of limited company businesses.
What will you get?
A taxable grant representing up to 80% of your average profits if you meet the following criteria:
- you submitted your tax return for 2018/19 ( year ended 5th April 2019 due by 31/1/20)
- your business traded during 2019/20
- your business is continuing to trade or would be except for coronavirus
- you intend to continue trading in 2020/21
- you have lost trading/partnership trading profits due to coronavirus
- your trading profits are less than £50,000 and represent more than half of your taxable income.
If you started your self-employment after 6th April 2019, then, at present, you are not eligible to claim this grant.
How is the £50,000 threshold applied?
Firstly, check the trading profits declared on the client’s 2018/19 tax return. If the amount is less than £50,000 and it makes up more than half of the taxable income, then the condition is met.
If not, then check whether the average profits for tax years 2016/17 to 2018/19 are less than £50,000 and accounts for more than half of the average taxable income during this time. If it does, then this meets the requirement.
How much will you get paid?
Individuals will get a taxable grant which will be 80% of the average profits from the tax years 2016/17 to 2018/19.
If you became self-employed during those years, HMRC will use the average for the years that tax returns have been submitted.
The maximum amount is £2,500 per month for three months, so to get the full amount you would need to have average profits of £37,500 per annum.
How do you apply?
HMRC will contact you if they think you are eligible for the self-employed scheme and applications will be submitted online only using GOV.UK.
In the meantime, if you would like us to check whether you are eligible for this scheme and calculating the amount you should receive, please get in contact.
Call us on 01273 441 187
You may also like…
COVID-19: What financial support is available?
Self-Employed support-COVID-19
Home-working allowance for self-employed
Bounce back loans
SEISS the fifth grant
The word accounting comes from the word accountability. If you are going to be rich, you need to be accountable for your money.
Robert Kiyosaki
