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Chancellor's Update 26 03 2020 - Help for the Self-Employed


Chancellor’s Update 26 03 2020

Well it looks like we have had the news that most of you have been waiting for – the help for the Self-Employed has finally been announced.

The plan for this is:

HM Government will pay a taxable grant which will be based on the average monthly income calculated over the last 3 years up and including- the tax year 2018/19. This will be 80% of that monthly profit up to a maximum of £2500. For those who do not have 3 years of accounts, they will look at what you do have.

This will be available for 3 months for now but will be reviewed once a better picture is available on how long this situation will continue.

The criteria for the grant:

Average profit of up to £50,000. Anybody over this amount will not benefit from help.

The majority of income must come from self-employment

You must already be in the system to have submitted your tax return for 2018/19. For those who are delayed in submitting their tax returns, you have 4 weeks from today to get those in. If you have been burying your head in the sand – get in touch now before you lose out!

For all of those affected, you will receive a form from HMRC which you will fill in and then send back. The grant will not be available until the beginning of June, but they are aiming to get it up and running earlier if possible. It will be paid directly into your bank – all 3 months in one lump sum.

For those in need now, the Universal Credit scheme has opened-up further to the Self-Employed. For those who have a non-working partner and 2 children, you may apply for welfare of up to £1800 per month.

The Business Interruption Loan Scheme has also been extended to the self-employed.

These are the main areas of the announcement, but we should receive further details soon and once we have them, we shall send them out to you.

For those businesses (not just self-employed) with employees – more details are being released on the job retention scheme (furloughed workers). I shall look over this tonight and report back tomorrow on what you actually need to do.

For anyone who feels that they need to furlough a worker, please let me know and I can provide the letter that is required to be given to them.

Keep an eye out for more details coming soon.

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