The Government have announced a grant, of up to £2,500 a month, to help the self-employed through the Covid19 Pandemic.
The amount you can claim is 80% of your average monthly profit, up to a maximum of £2,500.
The amount you can claim is calculated from your filed tax return over the last three years. If you only started self-employment last year then HMRC will use your 2018-2019 tax return to base you amount you can claim.
Who is eligible for the grant?
You are eligible for the grant if
- More than half of your early income is from self-assessment
- Your yearly trading profit is less than £50,000 (income – expenses)
- You must have filed your 2018-2019 tax return, this was due by Jan 31st, this year so if you haven’t done it yet you have 4 weeks to file it. If you need help to file your tax return for this period please click here.
Does this include construction workers?
The grant is for all self-employed workers, if you file a yearly tax return and more than 50% of your income comes from self-employment and you’re your profits are less than £50,000 annually then you can apply for the grant.
Who is not eligible?
You are not eligible for the grant if
- Your yearly profits are more than £50,000
- Less than 50% of your yearly income is from self-employment.
- You have not completed your 2018-2019 tax return, this was due by Jan 31st, this year so if you haven’t done it yet you have 4 weeks to file it. If you need help to file your tax return for this period please click here.
- Only 5% of the UK self-employed population aren’t covered by the grant.
When and how can you get the money?
You cannot apply yet for the scheme, although if you are eligible, tax2u will be able to advise you when the government released further information.
If you are one of our Gold Yearly Accounting Clients, then we will keep you updated on when you can apply, tax2u will also advise you how and assist where possible to make the application on your behalf. At the moment, we are waiting to hear about how next steps.
Sign up for your Gold Yearly Accounting Service today and you’ll get it for only £12+vat a month for life time (normally £20+vat per month)
– costs are tax deductible against your income.
What to do until the money comes in?
If you are working in construction and have been paying CIS tax then your quickest method to get money is to submit your 2019-2020 tax return (if you are due tax back). You can submit your tax return after April 5th 2020 and we can do this for you. To get a free tax rebate estimate for your 2019-2020 tax return please click here.
There are other sources of finances the government have made accessible
We have received so many questions from our client around this so here are some quick-fire answers
Question 1: What do I do now?
A: Right now, there is nothing that can be done to apply or claim this money. We are waiting for HMRC to issue next steps but the government have been very clear in saying the money is likely not to arrive until June.
Question 2: Can I carry on working?
A: Yes, you can carry on working, only if it’s save and you are following the government’s social distancing rules and taking precautions. We can still apply while your working and this will not affect your application.
Question 3: Can tax2u help file the claim for me?
A: Yes, we can help and advise you once we understand more from HMRC on how the grants can be claimed. We can also help ensure your 2018-2019 tax return is completed. You have 4 weeks to complete this so please start now
Question 4: If I’ve only recently started self-employed and not filed a tax return for 2018-2019 can I still get a grant?
A: No, unfortunately not. If you weren’t able to file a tax return for self-employed earnings in 2018/19, you won’t be able to apply.
Question 5: How long will the scheme last for?
A: The scheme is initially for 3 months, March, April and May but the Chancellor said it maybe extended.
Most importantly, please, everyone stay safe at home and follow the governments guidelines at all times.
