Update On The Self-Employed Income Support Scheme
Are you going to be eligibile?
Posted by Helen Beaumont on 22/04/2020 @ 8:00AM
The Government recently published further guidance on the new Self-Employed Income Support Scheme. It's available to the vast majority of the self-employed and people in trading partnerships ...
HMRC has offered more clarity on The Self-Employed Income Support Scheme!
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The headline for this scheme is that your self-employed trading profits have to be below £50,000 and more than half your total income should come from self-employed earnings.
Here are the guidelines for eligibility:
Trading profits/partnership profits in 2018-19 are less than £50,000 and more than 50% of your total taxable income comes from self-employed/partnership income.
Your average trading profits from 2016/17, 2017/18 and 2018/19 are less than £50,000. Again, more than 50% of your total taxable income came from self-employed/partnership income during those tax years.
Sadly, there is no support for those individuals or partnerships that commenced trading after 6th April 2019.
Remember, if you haven't filed your 2018/19 tax return yet you have until this Thursday (23rd April 2020) to get it submitted so you can qualify for the grant. For those who have filed their return on-time, HMRC will not take any amendments made after 26th March 2020 into consideration.
The Self-Employed Income Support Scheme will mirror the Coronovirus Job Retention Scheme for employees. It will provide you with a taxable grant with 80% of your average monthly trading profits over the past three years, which is limited to £2,500 per month. If you have been trading for less than three years, the payment will average over one or two years, depending on the number of tax returns you filed.
Normal tax deductions on your trading expenditure will be included when they calculate your taxable income. This includes:
However, there will be no deductions for the following:
This thinking should bring a number of people back into the Self-Employed Income Support Scheme where they were previously thought to be excluded.
And finally, those individuals with multiple self-employment will have their profits (and losses) combined and if you started trading part-way through a tax year, there is no part-year relief so your profits will still be averaged over the full 12-month period which may reduce the grant available to you.
Until next time ...
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more, it may be a great idea to give me a call on 01908 774323 and let's see how I can help you.
About Helen Beaumont ...
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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