Support for Self-Employed During Coronavirus
Posted on 26th March 2020 at 17:55
Support Promised by the Government to the Self-Employed
Today the government has announced financial support for the Self-Employed to help them through the financial concerns of Coronavirus.
We explain what this means for the Self-Employed.
The Government have promised the following help for the self-Employed:
Income Support Scheme - This will be a taxable grant of 80% of average earnings over the last 3 years tax returns, the last being 2019. For people with less than 3 years HMRC will use what ever information they have. The maimum monthly amount will be £2500 and will be paid as a lump sum at the beginning of June at the earliest but will be backdated to March. HMRC will be contacting self-employed people to complete a form. The grant will need to be included on the 2021 Tax return as psrt of income. To qualify at least half of all income needs to come from self-employment. Banks are being asked to support people with overdrafts until the money arrives.
What if I haven't submitted my 2019 tax return? HMRC are giving people 4 weeks from today to get their tax returns submitted.
Small businesses receiving - Small business grant funding of £10,000 will be available for all businesses receiving of small business rate relief, rural rate relief or tapered relief on 11th March 2020. This grant is to help businesses meet their ongoing costs. Businesses do not need to do anything, the local authority will write to you if you are eligible. Any queries should be directed to your local council. More information will be released later but funding is expected in early April.
Business Interuption Loan Scheme - This is avaliable for sole traders and Limited Companies. The 12 months interest and lender fees will be paid by the Government at the time of the loan being issued. You will need to provide evidence of profitability to prove you or your business can afford to repay the loan. More information about eligibilty and to apply can be found on the British Bank website.
Help with paying Taxes - The July tax payment on account does not need to be paid. All tax for 2019-20 will be payable in January 2021.
Business and Private Tenants - commerical and private tenants will be protected from eviction if they cannot pay their rent due to COVID-19 closures. Commerical tenants will not be forced out of their premises if they miss a payment up to 30th June 2020. This could be extended. It should not be seen as a payment holiday as the rent will still remain due.
Mortgages, Loans and Overdrafts - mortgage lenders will offer at least a three-month mortgage holiday, but borrowers should be aware that unpaid sums will be included when their repayments resume, increasing the monthly amount. Many banks are offering other support with loans, creditcards and overdrafts please see individual banks for more information.
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