As expected the Chancellor announced details of support for the self-employed this evening:
- The announcement covers self-employed only, not contractors or one man bands working through a personal service company as some actors thought may be the case.
- To qualify you must have made a maximum of £50k trading profits.
- You receive a taxable grant worth 80% of your average profit based on 3 years trading.
- The average can be based on a shorter period if you have been self-employed for a shorter period.
- You must have submitted at least an 18/19 self assessment tax return.
- You can be both Employed and self-employed, but the majority of your income must come from the self-employment.
- Unlike the Job Retention Scheme, you can keep working.
- The scheme is set up for an initial 3 month period.
- HMRC will contact the individuals directly.
- Anyone who has not submitted their tax return for 18/19 (so are late) has another 4 weeks to submit from today.
- The first payment is expected to arrive in June, that will be back-dated to March.
- The Chancellor made an observation on the inconsistency on taxation between the self employed and employed. National Insurance revamp in the future anyone?
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