In these unprecedented times, we have been receiving a high volume of calls from our clients asking for advice. As a result, we have put together a series of guides as a way to update everyone with the latest news and guidelines.
Please also refer to our News pages by following this link.
All information on this Summary will be regularly updated in line with Government advice as it is published.
We are trying to provide information to our clients as these new schemes are being announced and so we hope the below library will provide a good starting point. We shall endeavor to update these links as new detailed provisions emerge.
Sophie Howard FCA
Extension to Self-employment Income Support Scheme
The scheme currently allows you to claim a taxable grant worth 80% of your average monthly trading profits.
If you are eligible and your business has been adversely affected, you must make your claim for the first grant on or before 13 July 2020.
The scheme is being extended and if you are eligible you will be able to make a claim for a second and final grant in August 2020. This grant will be a taxable grant worth 70% of your average monthly trading profits and capped at £6570 in total.
Self-employment Income Support Scheme
A new scheme was announced on Thursday 26 March to help the self -employed.
The claims service opened on 13 May, ahead of the original timetable. The claims process will be very simple and those eligible will have the money paid into their bank account by 25 May or within six working days of completing a claim.
The scheme currently allows you to claim a taxable grant worth 80% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.
If you’re eligible and want to claim the first grant you must make your claim on or before 13 July 2020. This scheme is now being extended and you will be able to make a claim for a second and final grant in August 2020.
If you’re eligible the second and final grant will be a taxable grant worth 70% of your average monthly trading profits, paid out in a single installment covering a further 3 months’ worth of profits, and capped at £6,570 in total.
For more information about eligibility please click on the following link:
Information you will need to make a claim:
- You will need your 10 digit Individual Unique Tax Reference (UTR) and NI Number
- Government Gateway User ID and Password – if you do not have one of these currently set up, you must do this IMMEDIATELY
The link to sign up can be found here:
Please note that as agents we are not able to make the claim on behalf of our clients. HMRC will calculate the claims and then contact those who qualify to invite them to claim using the GOV.UK online service.
Please note the following:
- The grant will be subject to Income Tax and National Insurance contributions
- You can make a claim for Universal Credit while you wait for the grant, but once you receive the grant it may affect the amount of Universal Credit you get
- You must have submitted a 2019 Tax Return
- You have lost trading profits due to coronavirus
- Your trading profits must be no more than £50,000 and more than half of your total income for either the tax year 2018 to 2019 or the average of the 2019, 2018 and 2017 tax years
We are constantly reviewing the guidance so we will be able to assist with the claims when needed.
If you have any queries for the Crowthers team at this stage, please do not hesitate to contact us.
Last Updated: 02 July 2020