Colin Wilks & Co Limited Chartered Certified Accountants
Colin Wilks & Co LimitedChartered Certified Accountants

COVID19 Help for the self employed

The chancellor announced the Self Employment Income Support Scheme on Thursday 26th March.

You will qualify under this scheme provided you meet the following conditions:

1)      You completed a personal tax return for the 2018-19 tax year, and declared profits on the self employment pages; or were a member of a trading partnership and declared your share of the partnership trading profits on partnership pages

2)      You are continuing to trade as a self employed individual or as a member of a trading partnership (or would be doing so except for COVID19) and have traded in the 2019-20 tax year

3)      You intend to trade in the 2020-21 tax year

4)      You have lost self employment (or trading partnership) profits due to COVID19

5)      More than one-half of your total income is from self employment profit or trading partnership profits (see below)

6)      Your self employment profit or share of trading partnership profit was less than £50,000 (see below)

 

The £50,000 profit test and personal income test

 

If you have been a self employed individual or a member of a trading partnership for each of the tax years: 2016-17, 2017-18 and 2018-19 then you meet the requirement of the £50,000 test and majority income test if either:

a)       Your profits in 2018-19 were less than £50000 and were more than one-half of your total income; or

b)      Your average profits for 2016-17, 2017-18 and 2018-19 (add them up and divide by 3) were less than £50000 and were more than one-half of your average total income (add up your total income and divide by 3).

 

If you were NOT self employed or a member of a trading partnership in all of these three tax years, but were self employed or a member of a trading partnership for 2017-18 and 2018-19 then the same calculation rules apply, but the average is calculated by reference to two years.

 

If you were only self employed or a member of a trading partnership in the 2018-19 tax year then you simply use the figures from the 2018-19 tax year for this test.

 

IF YOUR PROFIT IS MORE THAN £50,000 OR LESS THAN ONE-HALF OF YOUR TOTAL INCOME YOU DO NOT QUALIFY.

 

IF YOU WERE NOT SELF EMPOLOYED OR A MEMBER OF A PARTNERSHIP IN 2018-19 YOU DO NOT QUALIFY

 

If you qualify

You will receive a taxable grant equal to 80% of your average profits from the tax years 2016-17, 2017-18, and 2018-19 subject to a maximum of £2500 per month for 3 months. This will be paid directly into your bank account in a single payment (which will probably be made in June 2020).

 

You can continue to work and still claim the taxable grant.

 

How to apply

HMRC will contact you if they believe you are eligible and invite you to apply online.

 

YOU DO NOT NEED TO DO ANYTHING YET.

 

If you receive any communication by text, telephone, or email DO NOT RESPOND AS THIS IS A SCAM.

 

Address

Colin Wilks & Co Limited


Suite 2, Douglas House

32-34 Simpson Road

Fenny Stratford,

Buckinghamshire

MK1 1BA

Making an appointment

If you have any queries or wish to make an appointment please contact us:

 

Tel: 01908 805080

Email: colin@colinwilks.co.uk

 

Alternatively, please use our contact form.

Print Print | Sitemap
© Colin Wilks & Co Limited A company registered in England & Wales, Registration number 04832012 Registered Office: Suite 2, Douglas House, 32-34 Simpson Road, Fenny Stratford, Buckinghamshire MK1 1BA