Can I apply for this scheme?
Yes, if all the following apply:
– Have submitted a 2019 Tax return
– Traded in the 2020 tax year
– Would be trading if wasn’t for Covid-19
– Intend to carry on trading
Plus, EITHER of the following
– Earned profits less than £50,000 in 2019
– Have averaged profits less than £50,000 in 2017,2018,2019 combined
What if I am both Self-Employed and PAYE?
If more than 50% of your income is Self-Employed you qualify.
What if I started Self-Employment this year?
Unfortunately, at this moment we believe you fall into the 5% of people that this scheme does not cover. We are awaiting further information on this.
Why have they capped Self-Employment at £50,000 as there is no capping on PAYE employees?
We are unsure, but again unfortunately you fall into the 5% that the scheme does not cover.
What if I haven’t filed a 2019 tax return?
You have until 23rd April 2020 to do so.
How much will I get?
This will be averaged out of profits from the last three years.
Anyone who averaged between £37,500 and £50,000 will receive £2,500 a month.
Examples of average profits:
£12,000 x 80% / 12 x 3 = £2,400
£20,000 x 80% / 12 x 3 = £4,000
£30,000 x 80% / 12 x 3 = £6,000
£37,500 x 80% /12 x 3 = £7,500 (MAXIMUM)
£40,000 x 80% /12 x 3 = £8,000 (however it is capped at £2,500 per month)
£50,000 x 80% /12 x 3 = £10,000 (however it is capped at £2,500 per month)
In short you will obtain a maximum of £2,500
Do capital allowances count towards profit?
No, the measure is on trading profits.
Is this a Grant or a Loan?
This is a taxable grant which we believe will need to be declared on your 2021 tax return. However, this is yet to be confirmed.
Can I still work?
How do I apply?
HMRC will contact you (we assume via the post) if you qualify and invite you to apply online.
Don’t respond to any texts, calls or emails as these are scams.
Only use gov.uk
When will I receive the money?
We are unsure of exact dates at this point, but we believe it will be sometime in June. Once HMRC has received your claim they will contact you to inform you how much you will receive.
What do I do if I need money now?
ESA – Contact jobcentre 0800 169 0350
Universal Credits – 0800 328 5644
Can I submit my 2020 return now?
No this cannot be submitted until 6th April 2020 but we can prepare the work now so it ready to go
What do I do now?
In short, nothing. HMRC will be in touch (we don’t know when, but we assume around May) as and when the scheme is in place. Further details will be announced once we are made aware of timings etc.
If there are still any questions you may have, then send us a message via the contact form and we will respond to you as soon as possible.