Henry and Banwell Chartered Accountants > News > COVID-19 > Statutory Self-Employment Pay Scheme – COVID-19

Statutory Self-Employment Pay Scheme – COVID-19

  • Posted by: Michael Winkelmann

What is available:

A taxable grant will be paid to the self-employed or partnerships, worth 80% of their profits up to a cap of £2,500 per month.

Initially, this will be available for three months in one lump-sum payment, and will start to be paid from the beginning of June 2020.

It will be called the Coronavirus Self-employment Income Support Scheme, and is open to those who were trading in the last financial year, still trading now, and planning to continue doing so this year.

Who is eligible?

More than 50% of a claimant’s income needs to come from self-employment.
The scheme will be open to those with a trading profit of less than £50,000 in 2018-19, or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2017-18.

Those who are recently self-employed and do not have a full year of accounts will not receive any help under this scheme and will have to rely on benefits.
The government’s new help comes on top of a six-month delay for tax payments through the self-assessment system.

How?

HMRC will contact you directly and ask you to complete and submit a Form.
Once processed they will pay the funds directly to your bank account.

Tax return 2018/19 not submitted?

If you have not submitted a 2018/19 tax return but have tax returns for the previous 2 years you have 4 weeks ( so 26 April 2020) to file your 2018/19 tax return so that you qualify for support.

Tax payment due 31 July 2020 postponed

The July 2020 Payment on account is now payable on 31 January 2021.

Please get in touch if you need assistance to file your 2018/19 Tax return.