Coronavirus Self-employment Income Support Scheme
This was announced yesterday, details are evolving, but this is what we know:
- a taxable non repayable grant for Self Employed and Partners – not company directors
- only available if your average profits over 16/17, 17/18 and 18/19 less than £50,000
- grant is 80% of average profits over 16/17, 17/18 and 18/19 to a maximum of £2,500 / month (believe this is 80% of £2,500 – punctuation not clear on Government website)
- scheme lasting three months initially
- the averaging year rules adjust if you started Self Employment in that period
- Self Employment must be the majority of your income
- payments to be made from June onward as one lump sum
- no restriction on continuing to work as we understand it
HMRCs Guidance:
Important – Company Directors / shareholders not covered. In theory can claim the Coronavirus Job Retention Scheme grant at 80% of salary but:
- salary only not dividend
- can’t continue to work whilst claiming
It seems like directors of small companies with a traditional small salary / high dividend split, including freelancers / contractors working through Personal Service Companies, are being overlooked.
Deferral of VAT payments due to CoronavirusHMRC have published details on VAT deferral scheme for businesses.
Key points:
– You don’t need to apply
– But you will need to cancel your existing Direct Debit
www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
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