You can use this scheme if you’re self-employed or a member of a partnership and have lost income due to coronavirus.
You can apply if you’re a self-employed individual or a member of a partnership and you:
In order to qualify for the scheme self-employed trading profits must be less than £50,000 and more than half of income must come from self-employment. This is determined by at least one of the following conditions being true:
If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return. If potential applicants have not submitted their Income Tax Self-Assessment tax returns for the tax year 2018-19, they must do this by 23 April 2020.
The scheme does not apply to anyone who started trading in 2019/20.
Successful applicants will receive a taxable grant which will be 80% of their average profits from the following tax years (where relevant):
The maximum grant will be up to a maximum of £2,500 per month for 3 months and will be paid directly into applicants’ bank accounts in one lump sum to cover the three-month period when the scheme will be applicable. the government will be looking to make the first payments “no later than the beginning of June”.
It is not possible apply for this scheme yet. HMRC will contact eligible persons and invite them to apply online.
To find out more please get in-touch with your usual contact at Claritas Tax.
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