So, following on from today’s announcement from the Chancellor, here is our quick summary.
Self-employed help in June?!
The Chancellor has announced aid for the Self-Employed workers in the country. Well, some of us, in a few months. Until then it’s Universal Credit.
So, what was announced today?
A grant called the “Self-Employment Income Support Scheme”. This in a nutshell is a grant worth 80% of your average monthly trading profits over the last three years up to a maximum of £2,500 per month.
The bottom line is self-employment is far more complex than being “employed”. Therefore, there are a lot more details we expect will be announced, some of which have not been worked out yet.
You apply through a website portal which is not going live until June, and you do not need to contact HMRC, they will contact you.
If you earn over £50,000 a year you are not covered.
The grant will be taxable so it will form part of your annual income.
More details will be announced for people who have recently started being Self-employed or had a break due to illness or maternity etc. and as more details are announced I will of course update you all.
As ever, if you have any queries, don’t hesitate to contact us.
Stay safe everyone,
At this time of uncertainty concerning the Government’s support for small businesses and the self-employed, we at Carty and Co Accountants are here to help! (And by here, we of course mean at home!)
I have a property.
If your business has a property, then you will be receiving a grant. Check your business rates bill and look for the Rateable Value (RV).
If it is less than £15,000 then you are entitled to a £10,000 grant. If it is between £15,000 and £51,000 then the grant is £25,000.
You don’t need to do anything; the council will contact you in early April. The Government said they will have the money by Friday.
So, what about sick pay?
If you are an employee, then you are entitled to statutory sick pay from day one. You need to speak to your employer and go to 111 online to get a sick note. As an employer the government will refund you two weeks of SSP per eligible employee.
What did I hear about 80% of my salary being paid?
The government has said they will pay 80% of your salary. But… This is only for businesses that cannot afford to pay staff so have “Furloughed” workers. This is where staff have been told not to work but have not been made redundant.
I am self-employed. What about me?
Not a lot has been announced. You can make a claim for Universal Credit or Employment and Support Allowance. However, there are more announcements to come. Going through parliament is the “Coronavirus Bill.” Part of this states that self-employed workers will receive 80% of their monthly net earnings, averaged over the last three years or £2,917, whichever is lower.
The devil with all this is of course in the detail. How is this applied for? When? As soon as this is announced, I will update this blog.
If you have any queries, don’t hesitate to contact us.
Stay safe everyone,
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