COVID-19: Support for the Self-Employed
Tonight, the new scheme has been announced to make provision for self-employed individuals with a profit of up to £50,000 to receive a grant being 80% of their net monthly earnings averaged over the last 3 years with a maximum of £2,500 per month.
You do not need to do anything, HMRC will contact you direct as they have all the details on the last 3 years tax returns filed. My understanding is that you will be asked to complete a form with some simple information and return to HMRC.
A payment will then be released in June backdated to March.
This is all the information we have at this time, however for the majority, it is a much better option than the lower amount of Universal credit (that’s if you would have even been entitled to it if your partner is in receipt of an income or if you have savings).
Coronavirus business helpline services
If you run a business or are self-employed and are concerned about paying your tax due to Coronavirus, you can call HMRC’s helpline for help and advice: 0800 024 1222.
HMRC will be able discuss specific circumstances including:
agreeing an instalment arrangement;
suspending debt collection proceedings; and
cancelling penalties and interest where you have administrative difficulties contacting or paying HMRC immediately.
Businesses planning to use the three-month VAT payment deferral
For those clients who are unable to pay VAT due between 20 March and end June 2020, you have the option to defer that payment until 31 March 2021.
‘You will not need to apply for deferral as eligibility is automatic. Customers who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. Please do this in sufficient time.’
HMRC has not yet confirmed how the Making Tax Digital for VAT system will handle this three-month deferral.
VAT refunds and reclaims will be paid by the government as normal.
We will keep you updated with further news to support your business as and when it becomes available.