On 26 March 2020, the government announced the introduction of a new Self-employed Income Support Scheme.
Under the new new Self-employed Income Support Scheme, eligible self-employed individuals, including partners, will receive a cash grant of 80% of their average monthly trading profit over the last three years, up to £2,500 a month. The scheme will run for an initial three months and be extended if required.
The following requirements must be met to be eligible under the scheme:
- the individual’s trading profit must have been less than £50,000 in the 2018/19 tax year, or their average trading profit over the last three tax years must be less than £50,000 a year;
- more than half of the individual’s income must have come from self-employment during the above periods; and
- the individual must be already in self-employment.
Individuals will be contacted by HMRC if they are considered to be eligible. HMRC will calculate the individual’s grant using the average of their trading profits from their tax returns for the last three years. The grant will be paid as a single lump sum covering March to May inclusive. HMRC hopes to start to pay the grants at the beginning of June.
This article is provided by Burlingtons for general information only. It is not intended to be and cannot be relied upon as legal advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact Richard Berry or write to us using the contact form below.
