Tel: 0115 943 6493

    Email: info@wrenaccountancy.co.uk


THE SELF EMPLOYED INCOME SUPPORT SCHEME
27/03/2020

Yesterday the Chancellor finally announced the long awaited Self Employed Income Support Scheme, wesay finally but in reality this along with the other employment packages and loan support schemes have been put together in a little under 10 days in all, which is extraordinarily quick for legislation of this magnitude needing to come into force. What is normally done with years of planning is being implemented in just weeks and it is not surprising therefore that there will unfortunately be those that fall between the cracks. The key points from the Self Employed Income Support Scheme are as follows.

  • The scheme currently runs from 1 March 2020 to 31 May 2020
  • You can receive a taxable grant of 80% of your “trading profit” up to a maximum of £2,500 per month.
  • The “trading profit” will be based on an average of your “trading profits” for the 3 tax years 2016/17, 2017/18 & 2018/19
  • You do not need to have traded in all 3 years but you MUST also have traded in 2019/20 (not one of the average years)
  • You must continue to trade (subject to current restrictions) in 2020/21
  • Your self-employment income must be over 50% all of your total income
  • You must have lost trading / partnership profits due to COVID-19 The concern here is there is no further clarity on this at this point but it must be assumed that unless you have a dip in profits that you are not entitled to claim it! This is going to cause great confusion, as annual accounting wouldn’t necessarilyhighlight a 3 month period where no income is received. At this point it is considered that it is included to keep the door open for HMRC to fight expected fraudulent claims - further clarification is awaited
  • If you have not filed a Tax Return for 2018/19 you have until 23 April 2020 to do so
  • HMRC will automatically calculate the amount and pay it into your bank account (this is expected in June)

Contact Us

Wren Professional Services Ltd

4 Cross Street, Beeston

Nottingham

NG9 2NX

0115 943 6493

info@wrenaccountancy.co.uk

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