The government have extended the Self Employed Income Support Scheme to allow eligible claimants to obtain a second grant under the same criteria as the first.
You must make claim for the first grant by 13 July 2020. Claims for the second grant payment will open from August 2020.
Let’s remind you of the main criteria and features of this support scheme:
- You can claim if you’re a self-employed individual or a member of a partnership and all of the following apply:
- you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
- you traded in the tax year 2019 to 2020
- you intend to continue to trade in the tax year 2020 to 2021
- you carry on a trade which has been adversely affected by coronavirus
- Your trading profits must be no more than £50,000 and at least equal to your non-trading income
- Eligibility will first be assessed on the 2018/19 tax year, then on all 3 tax years up to and including 2018/19 (average basis)
- Claims will be made in the same way as done for the first grant claim – i.e. using your Government Gateway ID and password, or accessing HMRC telephone support
- The second grant will be based on 70% of average self employment profits capped at £6,500
Reminder: Self Assessment payment deferral
On 31 July 2020, taxpayers registered for Self Assessment are due to make their second payment on account for the 2019/20 tax year,
HMRC have now deferred this payment until January 2021. There is no process to avail of this support, it is an automatic deferral with no interest or penalties arising on payments not made.
Note – for taxpayers eligible for this payment deferral, this may give rise to a much higher payment due by 31 January 2021. Cash-flow should be planned out accordingly.
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