- September 30, 2020
- Posted by: STERLING FINANCE
- Category: Corona Virus
The government has announced the Second stage of the Self-Employed Income Support Scheme since 17 August 2020.
- In the first round, the Government grant was 80% of the average of three months of trading profits, up to a maximum of £7,500 (average £2,500 per month).
- The second grant is up to 70% of 3 months average up to a maximum of £6,570 (average £2,190 per month). This grant opened on 17 August 2020 and will close on 19 October 2020.
- On 24 September, the third round extends the scheme up to 20% of 3 months average up to a maximum of £1,875 (average £625 per month). The date of the opening and the closing date is not yet announced.
- The fourth grant will be announced later.
- Average trading profits will be calculated as per submitted self-assessment for 2016/17, 2017/18 and 2018/19 with some exceptions for particular circumstances.
- The second, third and fourth grant can be claimed even if the first grant was not claimed.
- Grants are paid within 6 working days of submission of a claim.
- The claim must be submitted by the taxpayer and by anyone else (including Accountant).
- HMRC will do all necessary calculations, all you need to do is submit the claim.
- Every grant will be treated as income and is taxable.
11.1 Submitted 2018-19 Self-assessment tax return by 23 April 2020
11.2 Continue to trade in 2019-20
11.3 Intend to carry on trading in 2020-21
11.4 Trade is badly affected by Covid-19
- Here is the link to apply: https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme
This portal will close on 19 October 2020.
- The Process of making a claim:
13.1 read and accept the eligibility criteria;
13.2 complete a declaration, including to confirm that the business has been adversely affected by coronavirus;
13.3 supply the bank account details into which they would like the grant to be paid.
- Keep the following evidence:
14.1 business accounts showing a reduction in turnover;
14.2 submission reference number;
14.3 confirmation of any coronavirus-related business loans;
14.4 dates the business had to close due to lockdown restrictions; or
14.5 dates the taxpayer or their staff were unable to work due to coronavirus symptoms, shielding or caring responsibilities due to school closures.