Over 2.3 million self-employed people have so far claimed for the first self-employment income support scheme which saw over £6.8billion paid out. The Chancellor Rishi Sunak has now announced that the self-employment income support scheme will be extended for a second and final time for those affected by Coronavirus (Covid-19).
Self-employed workers will have 70% of their average earnings (up to £6,570 in total) paid for by the Government in one lump sum (like last time) in August (covering June, July and August).
The eligibility for the scheme will be the same as last time as follows:
· The scheme will be open to anyone with trading profits of up to £50,000 and will only be available to those who make the majority of their income from self-employment.
· You will need to have been in self-employment before the 5 April 2019 and have a tax return for 2019 to apply. If you are not eligible you can access full Universal Credit payments.
· The grant will be taxable since it is based on your last previous taxable income. Like the Job Retention Scheme this will be available for three months but will be extended if necessary.
· HMRC will contact all eligible self-employed people directly with an online form once the system is up and running. A lump sum covering three months will be paid directly into bank accounts from early June.
· If you have not yet submitted your 2018-2019 tax return you now have a four-week grace period to complete this.
The application process will be the same as the last time, whereby HMRC will contact those eligible by email to complete an online form and then funds will be paid directly into bank accounts sometime after.
If you need help or support on any of the above, please contact the friendly team at Clear Vision on 01794 330 025 or email us on email@example.com