Coronavirus Self-Employed Income Support
This package is a cash grant of 80% of self-employed profits capped at £2500 per month for 3-months.
The Chancellor, Rishi Sunak, unveiled on 26th March 2020 the Governments package of coronavirus support for the self-employed.
To Be Eligable
You must meet all the criteria:
- Your trading profits and total income in 2018/19
- Your average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19.
If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020.
There is no support package for those who have become self-employed since 6th April 2020.
There is no support package for those whose trading profits exceed £50,000.
There is no support package for those who have not made a profit from self-employment.
The Chancellor indicated that, at some time in the future, he will bring National Insurance Contribution rates for the self-employed in line with those working under PAYE.
To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply.
How to apply
HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply
Applications will have to be made through an online form.
Grants will be paid in a single lump sum instalment covering the 3-months to May 2020, and will start to be paid at the beginning of June.
Individuals are requested not to contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.
You will access this scheme only through the Government Gateway. If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or give information such as your name, credit card or bank details, it is a scam.
- Further information and details of the scheme will be released by HMRC. Balmer will share this with relevant Clients as it becomes available.
- This scheme also applies to partners in partnerships.
- The Chancellor stated that until grant payments are made, the self-employed will still be able to access other areas of government support for those affected by coronavirus including more generous universal credit and business continuity loans where they have a business bank account.
Support for Self-Employed and Individuals through
deferring Income Tax payments
Income Tax payments due in July 2020 under the Self-Assessment system may be deferred until January 2021.
All tax payers are eligible if you are due to pay your second self-assessment payment on account on 31 July. You do not need to be self-employed to be eligible for the deferment.
The deferral is optional. If you are still able to pay your second payment on account on 31 July and want to avoid paying a larger instalment in January, you can do so.
How to access the scheme
This is an automatic offer with no applications required. No penalties or interest for late payment will be charged if you defer payment until January 2021.
HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of COVID-19 and have outstanding tax liabilities.
The Budget 2021
The Chancellor Rishi Sunak presented his second Budget on Wednesday 3 March 2021. In his speech he stated his Budget ‘meets the moment with a three-part plan to protect the jobs and livelihoods of the British people’.
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