The Chancellor has unveiled an emergency support package for self-employed workers and partners which brings them into line with the support already available for employees.
In Summary, the government will pay self-employed people a taxable grant based on their previous monthly earnings over the last 3 years, worth up to 80% of earnings and capped at £2,500 a month. To qualify you must have annual profits of LESS THAN £50,000 a year, according to HMRC.
The last three years’ tax returns will provide the evidence of your earnings. HMRC will take an average of your earnings as a self-employed person over the last three years. If you have been self-employed for just one or two years HMRC will use the tax returns for those years. To qualify you must have either:
- Trading profits/partnership trading profits in 2018/19 of less than £50,000 and these profits make up more than half of your total taxable income: or
- You have average trading profits in 2016/17, 2017/18 and 2018/19 of less than £50,000 and these profits make up more than half of your average taxable income in the same period.
Payment is unfortunately not immediate as grants are not expected to be made until June but will be backdated to March. The payment will be made as one lump sum direct to your bank account. The scheme is expected to last for three months but will be reviewed and if necessary extended.
The grant will be awarded automatically and those qualifying will be identified from HMRC Self -Assessment records, HMRC will contact you with a form to complete and send back.
There is nothing for you to do at present and HMRC have asked that you do not contact them about this – as they will contact you.
Full details can be found HERE and we are here to help with any questions you may have.