This scheme will allow Self-Employed to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.
Self Employed who filed a Self-Assessment for the tax year 2018-2019, who are trading in 2019-2020 and intend to trade in the following year are eligible for the grant. Self-employed must have an income lower than £50,000 and more than half of the income must come from Self Employment. At least one of the following conditions must be satisfied:
- having trading profits/partnership trading profits for 2018-19 of less than £50,000, where these profits constitute more than half of the total taxable income;
- having average trading profits for 2016-17, 2017-18 and 2018-19 of less than £50,000, where these profits constitute more than half of the average taxable income in the same period.
If Self Employed have not yet submitted their Self-Assessment tax return for the year 2018-19, they must do it by 23 April 2020.
Self-Employed will get a taxable grant equal to 80% of the average profits from the three following tax years (where applicable):
- 2016 to 2017
- 2017 to 2018
- 2018 to 2019
To work out the average, HMRC will add together the total trading profits for the 3 tax years (where applicable), then divide them by 3 (where applicable), and use this to calculate a monthly amount.
Self-Employed cannot apply for this scheme yet. However, HMRC should contact them directly to invite them to apply online.
Individuals (not only self-employed) who are due to pay a second self-assessment instalment on the 31st of July 2020 can postpone their payments until the 31st of January 2021. There is no need to make any application in order to benefit from this postponement. No penalties or interests for late payments will be charged if the payment is deferred until January 2021.