The Chancellor, Rishi Sunak, last night (26 March) has announced the eagerly anticipated Self-Employment proposals via the Self-Employed Income Support Scheme, the key features of which are:
- The Grant will initially be for 3 months, consistent with the PAYE Job Protection Scheme
- Those accepted in the Scheme will receive a GRANT of 80% of their average monthly profits for the last 3 years up to a figure of £2,500 per month
- HMRC will contact those that they believe will be ‘in scope’ and ask them to complete an application form
- The scheme only be open to those with profits of up to £50,000 (said to cover 95% of the Self-Employed population)
- The grants will be based on Self-Assessment Tax Return data for the last 3 Tax Years, and there has been a four week extension for those who have not yet filed their 2018-19 return
- Those self employed with less than three years can send in 2 years or 1 if their business has only been going that long.
- HOWEVER the scheme will not be in place and Grant payments will not be made until “early June”, because of operational complications and implementation.
Please note the other sources of finance recently announced which are also available:
- Business Interruption Loans (with no interest for 12 months), but repayable in the longer term;
- Universal Credit
- If necessary take advantage of ‘Time to Pay’ for Self-Assessment and VAT
- And a reminder that Self-Assessment Payments on Account due on 31 July 2020 are deferred until 31 January 2021
We would also urge anyone with immediate cash flow issues to speak to their bank now and seek assistance. In this regard up to date management accounts will certainly help this process.
If you, or a business owner you know, need further business advice please contact PBC Team and our North Kensington Business Champion, Stuart Woodrow, or one of our business advisors will support you by phone.
Tel: 020 7460 5050
For further details please visit Government’s website