{"id":690,"date":"2020-03-30T00:00:00","date_gmt":"2020-03-30T00:00:00","guid":{"rendered":"https:\/\/srcadvisory.com\/self-employment-income-support-scheme-latest-update\/"},"modified":"2020-04-14T11:27:56","modified_gmt":"2020-04-14T11:27:56","slug":"self-employment-income-support-scheme-latest-update","status":"publish","type":"post","link":"https:\/\/srcadvisory.com\/self-employment-income-support-scheme-latest-update\/","title":{"rendered":"Self-Employment Income Support Scheme- Latest Update"},"content":{"rendered":"<\/p>\n
\n

Last week, the Chancellor announced the Government\u2019s package of support for the UK\u2019s self-employed workers and members of trading partnerships.
\n\u00a0
\nThe main feature of the relief is that a \u00a0self-employed person or a partner of a trading partnership can claim a grant of up to \u00a32,500 per month for the three months, March to May 2020 if they meet the conditions.<\/p>\n

Who can apply?<\/strong>
\n\u00a0
\nSelf-employed individuals or members of a trading partnership can apply if you:<\/p>\n

\n\u2022\u00a0\u00a0 \u00a0have submitted your Income Tax Self Assessment tax return for the tax year 2018-19 (if this has not\u00a0 \u00a0 \u00a0 \u00a0been submitted yet, then you must do so by 23 April 2020)
\n\u2022\u00a0\u00a0 \u00a0traded in the tax year 2019-20
\n\u2022\u00a0\u00a0 \u00a0are trading when you apply, or would be except for COVID-19
\n\u2022\u00a0\u00a0 \u00a0intend to continue to trade in the tax year 2020-21
\n\u2022\u00a0\u00a0 \u00a0have lost trading\/partnership trading profits due to COVID-19
\n\u2022\u00a0\u00a0 \u00a0have self-employed trading profits of less than \u00a350,000, and more than half of your income comes from self-employment.<\/p>\n

How much will you get?\u00a0<\/strong><\/p>\n

\n\u2022\u00a0\u00a0 \u00a0One instalment of the grant will be transferred directly into your bank account if HMRC agrees that\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0you are both eligible and approved (expected in June).
\n\u2022\u00a0\u00a0 \u00a0The grant will be 80% of the average profits from the previous 3 tax years (or the average of 1 or 2\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0years if you do not have 3 years), up to a maximum of \u00a32,500 per month for 3 months (backdated to\u00a0 \u00a0 \u00a0 1 March).
\n\u2022\u00a0\u00a0 \u00a0This is not tax-free income. The payments will form part of your trading profit for the year and be taxed along with the rest of your trading profits through your Self-Assessment Tax Returns.<\/p>\n

Next steps\u00a0<\/strong><\/p>\n

\n\u2022\u00a0\u00a0 \u00a0Ask us or check your earlier years\u2019 tax returns for scheme eligibility- \u00a0on the majority trading and\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a350,000 trading profit conditions.
\n\u2022\u00a0\u00a0 \u00a0Tell us to file your tax return for 2018\/19 (if you have not yet done so) by 23 April 2020.
\n\u2022\u00a0\u00a0 \u00a0Because HMRC expects to pay the first grant instalment \u00a0in June, you still need to address cashflow\u00a0 \u00a0 \u00a0 \u00a0 \u00a0until the monies are actually transferred. We will help you with cash flow forecast and analysis
\n\u2022\u00a0\u00a0 \u00a0Consider other help you may be eligible for as a self-employed worker or member of a trading partnership such as:\u00a0
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0o\u00a0\u00a0 \u00a0VAT payment deferment
\n\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0o\u00a0\u00a0 \u00a0Self-Assessment July 2020 payment deferment
\n\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0o\u00a0\u00a0 \u00a0Time to pay arrangement with HMRC for other taxes
\n\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0o\u00a0\u00a0 \u00a0Coronavirus Job Retention Scheme to cover 80% of furloughed staff costs
\n\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0o\u00a0\u00a0 \u00a0Statutory Sick Pay (SSP) support\u00a0
\n\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0o\u00a0\u00a0 \u00a0Coronavirus Business Interruption Loan Scheme\u00a0
\n\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0o\u00a0\u00a0 \u00a0Small Business Grant Scheme\u00a0
\n\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0o\u00a0\u00a0 \u00a0Specific sector grants administered by local authorities<\/strong>
\n\u00a0\u00a0
\n\u2022\u00a0\u00a0 \u00a0HMRC are supposed to invite you to take part in this program, but following the maxim \u2018don\u2019t ask, don\u2019t get\u2019, if you have not been contacted by HMRC in the next few weeks, and you believe you are eligible then you should apply directly to HMRC for the grant.
\n\u00a0
\u00a0Losers and Winners<\/strong>
\n\u00a0
\nIf you have started trading on or after 6 April 2019 you will not be covered by these measures. For new self-employed businesses there is scope to claim support through either Universal Credit or Jobseekers Allowance.
\n\u00a0
\nIf your partnership derives most of its income from residential lettings then this program will not cover you. \u00a0HMRC do not regard this activity as a trade. \u00a0However, commercial property letting and furnished holiday lettings will qualify.
\n\u00a0
\nAlthough taxpayers who trade through their own company may consider themselves self-employed these measures do not extend to cover the shareholder directors of personal trading company. \u00a0We will address this issue in another Blog article
\n\u00a0
\nThere is nothing in the scheme that stops a self-employed individual or member of a trading partnership taking up temporary employment (bearing in mind the government guidelines on self-quarantine) from now until the payment of the grant. Equally it does not preclude a claim being made under Universal Credit to alleviate hardship, whilst waiting for the grant.<\/p>\n

Equally there is no requirement to cease trading whilst awaiting the grant, so some income, however minimal, may still be received.<\/p>\n

For most self-employed individuals and members of a trading partnership, this scheme offers a welcome lifeline to keep a business afloat.
\n\u00a0
\nSRC-Time are one of the South East\u2019s leading accountancy firms in advising the self-employed and partnerships in all aspects of their tax affairs and we are able to assist in any issue raised above.<\/p>\n

Our expert team is available to provide you with advice and can be contacted on 01273 326 556 or you can drop us an email at info@src-time.co.uk<\/a> \u00a0or speak with an account manager to get any process started.
\n\u00a0<\/p>\n<\/div>\n

\n

SRC-Time Ltd
\n2nd Floor
\nStanford Gate
\nSouth Road
\nBrighton
\nBN1 6SB<\/span><\/p>\n

T: +44 (0) 1273 326 556<\/a>
\nF: +44 (0) 1273 733 827
\nE: info@src-time.co.uk<\/a><\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Last week, the Chancellor announced the Government\u2019s package of support for the UK\u2019s self-employed workers and members of trading partnerships. \u00a0 The main feature of the relief is that a \u00a0self-employed person or a partner of a trading partnership can claim a grant of up to \u00a32,500 per month for the three months, March to […]<\/p>\n","protected":false},"author":4,"featured_media":691,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14],"tags":[21,18],"acf":[],"_links":{"self":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/posts\/690"}],"collection":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/comments?post=690"}],"version-history":[{"count":0,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/posts\/690\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/media\/691"}],"wp:attachment":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/media?parent=690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/categories?post=690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/tags?post=690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}