Circular – 27th March

HELP FOR THE SELF EMPLOYED

The Chancellor yesterday announced the support package for self-employed people affected by the coronavirus outbreak.  Details can be found at Self-Employed Income Support Scheme.

The government will pay self-employed people adversely affected by coronavirus a taxable grant worth 80% of their average monthly trading profit over the last three years, up to £2,500 per month, for at least three months.

The person claiming must have filed a 2018/19 tax return.  Late filers will have four weeks from 23rd April to get their return in.  Therefore, they must have started trading before 5th April 2019. Anyone who started trading 6th April 2019 onwards will not be covered.. The scheme will be open to those with trading profits of £50,000 or less, who make the majority of their income from self-employment.

Those who trade through a limited company and pay themselves a salary and dividends are not covered but will be covered for their salary, but not dividends, by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.

HMRC will contact self-employed people eligible to receive financial support by the beginning of June. Using an online form, they can then apply directly to HMRC for the grant, and the tax authority will pay the grant straight into their bank accounts.

The first payments will be made no later than the beginning of June. Grants will be paid in a single lump sum instalment covering the three months for which the scheme is applicable.

Unlike employed workers furloughed during the outbreak, self-employed workers can continue working and claim the grants.

Anyone struggling now was reminded about the Business Interruption Loan Scheme, details of which we gave in our original Financial Assistance circular, as well as the changes made to Universal Credit.

NEW HMRC CORONAVIRUS HELPLINE

Due to increased demand on it’s helpline, HMRC have opened a new dedicated Coronavirus helpline.  The number is 0800 024 1222.  It is open weekdays only from 8am to 4pm.

UPDATE ON CBIL (Coronavirus Business Interruption Scheme)

Barclays, HSBC and Lloyds have all announced that any Director who secures a loan of up to £250k via the CBIL scheme will not have to sign a Personal Guarantee.  Above this directors may still have to sign one.