Self Employment Support
In these trying times, it is reassuring to see that the Chancellor has just made his announcement around the support package available for the self-employed (which includes partnerships.)
But what does it really mean? Let’s break it down a bit.
We have compiled a list of Frequently Asked Questions to help you understand it all a bit better
Q. How do I get started?
A. You don’t need to do anything yet. HMRC has no system in place yet. They will identify you from their records and be in touch in due course
Q. How much will I receive?
A. HMRC will provide a grant for 80% of your average monthly profits based over the last 3 years tax returns (18/19 being the most recent) or £2500 per month, whichever is the lower figure.
Q. When will the funding be available?
A. The funding will not be available until at least June 2020.
Q. Is there any financial support available in the meantime?
A. Before grant payments are made, the self-employed will still be able to access other available government support for those affected by coronavirus including more generous universal credit and business continuity loans where they have a business bank account.
Q. What if I haven’t filed my 18/19 return yet?
A. You have only 4 weeks to get your return submitted, the deadline is 23 April 2020. If you are in this position, we can help you out with this. Get in contact with us at info@soneillandco.com for more information
Q. How long will the funding last?
A. The funding is initially put in place from 3 months being from March to May, however we presume this will be extended for as long as the pandemic continues.
Q. Is everyone eligible for the support?
A. Unfortunately, anyone with profits over £50K is not eligible for the support.
Q. I am both employed and self- employed, how will this affect me?
A. Your total income from self-employment needs to be more than 50% of your total income otherwise you don’t qualify
Q. I am self -employed and receive rental property income, is this a combine figure?
A. As far as we are aware, it only covers profit from self-employment. Rental property income is outside of this so cannot be added.
Q. All my income is from rental properties, how will this affect me?
A. As far as we are aware, rental property income is outside of this so you might not receive any support.
Q. I am a company director who takes a small salary and a high dividend, how will this affect me?
A. Dividends are not covered but if you are paid via a payroll scheme you may be able to furlough yourself and re-claim 80% of your monthly salary from the date you become a furloughed worker. Please see the following link for more information on this. https://www.nibusinessinfo.co.uk/content/coronavirus-claim-wage-costs-through-coronavirus-job-retention-scheme
Q. What if I have recently de registered as self-employed?
A. Unfortunately, you will not be covered by this. You need to be currently trading at the point of application (or would have been if it were not for Covid-19) and that you intend on continuing to trade once the pandemic ends.