Last night the Government announced the support that they are going to be offering the Self-Employed. The support available is as follows:
A taxable grant of 80% of the average profits from the last three tax years (where applicable) will be payable for the next 3 months, up to a maximum of £2,500.00 per month.
If a self employed person has not been trading 3 years, then an average will be paid on the number of years they have been trading, however the grant will unfortunately not apply to self employed individuals that started in the 2019/20 as a condition of the grant is the 2018/19 tax return must have been submitted.
Self employed profits must be less than £50,000 and more than half of your income must have been from the self employed income.
HMRC are looking to pay the grants out in a lump sum directly into bank accounts sometime in June 2020 and currently there is no way to apply for the scheme so we will keep you updated and let you know as soon as we are able to apply for you.
Full details of the scheme can be found here: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
Directors of limited companies
Further guidance has been issued and directors of limited companies will qualify for a 80% rebate of their PAYE salaries. Please note to qualify then you must not be working and the rebate is limited to 80% of your PAYE salary ran in February 2020 so therefore does not cover dividends.