COMPLIANT CONTRACTING SERVICES
COMPLIANT CONTRACTING SERVICES
The Government will pay self-employed people who have been adversely affected by the coronavirus a taxable grant worth 80% of their average monthly profits for the last 3 years, up to £2,500 a month.
Eligible self-employed people will get a grant initially to cover three months.
Sunak stated that the Government would extend the Scheme if necessary.
You’re eligible if you hit all these criteria:
· you pay income tax in the UK
· your trading profits each year for the last 3 years were no more than £50,000
· the majority of your income is from self-employment
· you are already registered as ‘self-employed’ and you submitted a tax return for the tax year 2018 to 2019
If you only started working as self-employed between 2016 and 2019, HMRC will work out your payments based on the years for which you filed a Self-Assessment tax return.
If you’re self-employed but haven’t yet filed a tax return – that is, you started your business after 1 April 2019 – you’re not eligible for this Scheme.
Sunak stated that this Scheme would help 95% of self-employed people in the UK. The Government want to make sure that this Scheme does not pay a grant to the extra 5% of self-employed people who are super-wealthy, for example top celebrities, sports professionals etc who do not need ‘aid’.
You don’t need to do anything yet.
If you’re eligible, HMRC will contact you directly. You’ll be asked to fill in a form and then they’ll pay the grant directly into your bank account. You’ll get one instalment, to cover three months.
If you missed the 31 January deadline to submit your Self Assessment tax return for the tax year 2018 to 2019, then good news: you have until 23 April 2020 to submit your late tax return and still be eligible for this Scheme.
We are offering a tax return service. Please contact us for more info.
If someone emails, calls or messages you claiming they’re from HMRC and asks you to click a link or to give details (name, account number, credit card number etc), it’s a scam.
The genuine message you get from HMRC will ask you to go to the Gov.uk website.
You should always check carefully to make sure a message or call claiming to be from HMRC is genuine.
Sunak stated that eligible people will “be able to access this Scheme by no later than the beginning of June”. From this, it isn’t yet clear when HMRC will make the first payments under this Scheme.
The Government has acknowledged that many self-employed people need help now. Other aid schemes open to self-employed people include:
· Coronavirus Business Interruption Loan Scheme
The Scheme provides finance for small businesses which have or will have their cash flow disrupted by lost or late income due to the coronavirus outbreak.
· Deferred Self-Assessment tax payments
Payments you were due to make by July 2020 can be deferred until the end of January 2021. You don’t need to apply and there’s no fee or interest for deferring.
· Universal Credit
To help during the coronavirus crisis, the Government have changed the eligibility criteria for Universal Credit so that “self-employed people can access this aid in full”.
· Coronavirus Grants
You might be eligible for a grant if you have a property on which you pay business rates.
· Job Retention Scheme
If you’re the director of your own company and you pay yourself through PAYE, you might be able to use this Scheme.
Yes. The money you’ll get from this Scheme depends on your income from the last three years, not any income you’re making now. So you can continue to work, take on new work, take payments and so on.
Because as well as deciding what to offer, it wasn’t straightforward to set out who is eligible.
Addressing MPs on 25 March, Boris Johnson acknowledged it had been difficult to decide how to organise a scheme to support people who pay tax through Self-Assessment rather than the PAYE (Pay As You Earn) scheme for employees.
Johnson stated that the Government wanted to do “whatever we can to support the self-employed, just as we are putting our arms around every single employed person in this country”.