The Government have announced a package for the self-employed on 26/03/2020.
This support is available for those who are registered as self employed with HMRC and have submitted xxxx accounts.
The employment status of grooms is critical in determining what government support is available at this challenging time.
If one has been told by an employer that they are ‘self-employed’, yet have not registered themselves as such with HMRC, sadly that individual will not be eligible for this self employed package NOR government support for the employed that are not required or unable to work i.e furlough.
We recommend applying for Universal Credit in this circumstance.
- The government will pay self-employed people, who have been adversely affected by the coronavirus, a taxable grant worth 80% of their average monthly profits over the last 3 years, up to £2,500 per month. Open for at least 3 months across the UK, and it will extend if necessary
- You’ll be able to claim these grants and continue to do business. It's covering the same amount of income as we are for furloughed employees, who also get a grant worth 80%.
- It’s only open to those with trading profits up to £50,000, who make a majority of their income from self-employment. To minimise fraud only those already in self-employment, who have a tax return for 2019 can apply.
- HMRC are working urgently, we expect people to access it no later than the beginning of June. If eligible, HMRC will contact you with an online form, they pay the grant straight to your bank account.
- To make sure no one who needs it misses out on support, anyone who missed the filing deadline in January, four weeks from today to submit their tax return.
- You can access the business interruption loans.
- Income tax payments due in July can be deferred to the end of Jan 2021.
How do I access it
Further details to follow
I am employed and self employed
I am registered both employed and self-employed, which Government support applies to me?
This scheme is only open to those who make a majority of their income from self-employment
How soon will i have access to the money
At present the date hasn’t been confirmed, but it is thought to be estimated that the support will start paying out in June.
Do i have to be registered with the HMRC
Yes you do.
If you are not registered as self employed with HMRC then you do not qualify for this support. We recommend that you look at applying for Universal Credit.
What happens if I only recently registered with hmrc
To apply for this support you need to have been registered as self-employed and have a tax return for 2019.
If you fall outside of this time frame then you will need to apply for Universal Credit.
I am not sure if i am in fact registered with hmrc
To be self-employed you will be registered with HMRC, submit your own tax return and pay your own National Insurance/Income Tax.
If you are not registered as self employed, then unfortunately this Government support is not available to you and you will need to register for Universal Credit.
I have been told by my employer that i am self employed
Your employer can not tell you that you are self-employed. If you work for just one person then you will be employed by them.
There are certain stipulations that you need to meet to self-employed, (such as being registered as self employed with HMRC, setting your own working hours, issuing invoices for work done and paying your own income tax/National Insurance).
If these do not apply to you then you have a false employment status.
If you are not registered as self employed, or employed (this is where you employer pays your tax and national insurance contributions out of your income), unfortunately you will need to register for Universal Credit.
what is universal credit and does it apply to me
Universal Credit is government support for those who don’t qualify for the self employed, or employee packages.
You could get Universal Credit on the basis of remaining at home on government advice:
- If you don’t qualify for Statutory Sick Pay or Employment and Support Allowance or
- you need additional help on top of SSP or New-style ESA.
As there is at least a five-week wait before you get Universal Credit, you can get help from day one through a Universal Credit Advance Payment. Advance payments have to be paid back out of your Universal Credit payments .and must be paid back within 12 months.
People who need to claim Universal Credit because of coronavirus will not have to produce a fit note. Universal Credit is claimed online.
Self-employed claimants on Universal Credit who are required to stay at home or are ill as a result of coronavirus will not have a Minimum Income Floor (an assumed level of income) applied for a period of time while affected.