The chancellor, Rishi Sunak, has announced a support package for self-employed workers. An outline follows.
The scheme will allow individuals to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 a month for the next three months at least.
It is available to self-employed individuals or members of a partnership who have submitted their income tax self-assessment tax return for 2018-19; traded in 2019-20; are trading when they apply, or would be except for Covid-19; intend to continue to trade in 2020-21; and have lost trading profits as a result of the virus.
Profits must be less than £50,000 and comprise more than half of the individual’s income.
For taxpayers who began trading between 2016 and 2019, HMRC will use only the years for which they filed a self-assessment tax return.
Individuals who have not submitted their 2018-19 return must do this by 23 April 2020.
When the scheme is open, HMRC will contact eligible taxpayers and invite them to apply online.
More details of this scheme can be found in ‘An ill wind’ by Richard Curtis on page 14 of this week’s issue.
HMRC self-employment income support scheme: http://tinyurl.com/hmrcsec19m