Do you qualify?
There are a few complex criteria for being eligible for the grant, and not all our clients will qualify. The website above gives a detailed breakdown; but the main points are:
- Self-employed profit (either as a sole trader or partner in a partnership) averages over the last 3 years less than £50,000/year;
- Self-employed income is your main source of income (over 50% of your total income is from self-employment).
- You have submitted a 2019 tax return.
- You are trading when you apply, or would be except for COVID-19
- You intend to continue to trade in the tax year 2020-21
- You have lost trading/partnership trading profits due to COVID-19
What you’ll receive.
The grants will be based on an average profit as declared on your 2017, 2018 & 2019 tax returns (which have already been submitted). Your 2020 tax return does not need to be submitted, and won’t make any difference to these claims.
The first grant (available now, covering lost income for March, April and May) will give you up to 80% of the monthly average, for a period of 3 months. This is capped at £2,500/month. You must make your claim before 13th July 2020
The second grant will be available in August (covering lost income for June, July & August), and will be available to those who claimed the first grant. However, the payment will be based on 70% of profits, capped at £6,570 in total.
These grants will form part of your taxable income which will be declared on your 2021 tax return.
Unfortunately, we cannot help you with Universal Credit, mortgages, Bounce back loans, CBILS applications etc. However, should you need any information confirming (personal details or income figures) then please message us on 07384 594 766 and we will send it through as soon as we can.
We hope this helps. We are receiving a large number of calls each day; with all office phone lines diverted through to a single mobile, and we are struggling to answer all your calls, we’re also finding we’re on hold to HMRC for hours too! Thank you for your patience. It is much easier for us to deal with queries and questions on email or WhatsApp. This also gives us time to double check the answer against your specific situation
Last updated 10am, 1st June 2020
The above is our understanding of this policy and how this will work based on the information published so far. It should not be relied on for advice at this stage but is intended to give an indication of how the scheme will work.