The Government has announced further measures to help businesses deal with the Coronavirus. These include:
- Support for the Self Employed – the Coronavirus (COVID-19) Self-employment Income Support Scheme
- Deferring VAT payments
- Deferring Income Tax payments
Maintaining cashflow is probably the most important issue for a business at the moment.
The Coronavirus (COVID-19) Self-employment Income Support Scheme
The Government has announced the Coronavirus (COVID-19) Self-employment Income Support Scheme to help self employed workers.
This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.
You can apply if you’re a self-employed individual or a member of a partnership and you have submitted your Income Tax Self Assessment tax return for the tax year 2018-19.
If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020 to be eligible.
Ellacotts tax team would be delighted to help anyone who hasn’t yet submitted their 2018-19 tax return. Contact us today.
Other criteria for the scheme include:
- Where the self employed worker has 3 years accounts, the profits will be the average monthly profits of the last 3 years
- Where the self employed worker doesn’t have 3 years accounts, it will be the average of the shorter period
- It will be open to self employed workers with profits of less than £50,000 in 2018/19 tax year, or an average of £50,000 over the tax years 2018/19, 2017/18 and 2016/17
- The grant will be available from June 2020 and paid directly into the self employed workers bank account
- More than half of their income must come from self employment
HMRC have asked that tax payers do not contact HMRC as they will identify eligible taxpayers and contact them directly on how to apply for the grant.
Support for businesses by deferring VAT Payments
There will be a VAT payment deferral for 3 months, the deferral will apply to VAT payments due from 20 March 2020 to 30 June 2020. This will apply to all UK businesses. However, businesses must still file their tax returns.
This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period.
We strongly recommend that any direct debits due during this period are cancelled immediately.
Support for anyone who is due to make Self Assessment payment on account due on 31 July 2020
If you due to make a payment on account under Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021.
This is an automatic offer with no applications required.
As part of the UK200Group we have access to up-to-the-minute information and can help you get access to the support you need. We’ll be keeping you informed in general terms, but please don’t hesitate to get in touch if you have any questions or concerns.
Read more about the other Coronavirus support packages the government has announced: