Support for Brixton’s self employed explained

Brixton accountants One Abacus explain what yesterday’s (26 March) announcement by the Chancellor will mean for the self-employed
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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

One Abacus Ltd, Shakespeare Business Centre, Coldharbour Lane, London SW9 8RR