How will the Government help the self-employed and small business owners?
A direct cash grant of 80% of their profits, up to a maximum of £2,500 per month.
How is this worked out?
HMRC will use the average trading profits from tax returns in 2016-17, 2017-18 and 2018-19 to determine the size of the grant. If you haven’t submitted 3 years tax returns as a new business, it will be an average of what you have submitted.
Who is entitled to the self-employed support?
The scheme will be open to companies with a trading profit of less than £50,000 in 2018-19, or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19. To qualify, more than half of their income in these periods must come from self-employment. To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply. This scheme also applies to members of partnerships.
How do I apply for the self-employed grant?
You do not need to do anything. HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply. You will be asked to fill out a short form. Please do not contact HMRC regarding this grant.
How will the grant be paid?
The income support scheme, which is being designed by HMRC from scratch, will cover the three months from March to May. Grants will be paid in a single lump sum instalment covering all 3 months and will start to be paid at the beginning of June direct into your bank.
I’m a Limited Company Director, can I apply?
Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme as long as they are operating PAYE (pay as you earn) schemes.