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Self-employment Income Support Scheme
If you are self-employed or a member of a partnership and you have lost income due to coronavirus, you may be able to claim a taxable grant worth 80% of your trading profits up to a maximum of £2500 per month for the next three months. This period may be extended if needed.
You will be able to apply for this grant if you are a self-employed individual or a member of a partnership and you:
Your self-employed trading profits must be less than £50,000 and more than half of your income must come from self-employment. If you therefore have other income such as employment income, rental income or pensions, and this other income constitutes more than half of your total taxable income, you will not be eligible to claim under this scheme.
You cannot apply for this scheme yet. HM Revenue & Customs will use the data from your 2018/19 tax return already submitted to identify if you are eligible and will then contact you, presumably by letter, inviting you to apply online. At this point, I do not know if I will receive a copy of that communication so it is important that you let me know when you receive it.
Assuming that you are eligible for this scheme, you will receive a taxable grant of:
Once determined, the grant will be paid directly into your bank account, in one instalment.
You will only be able to access this scheme through GOV.UK. If someone texts, calls or emails you claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it will be a scam.
Please note that you can continue to work during this period and still receive the grant, providing you meet the criteria as set out above.
Unfortunately, this scheme is not going to be ready until early June so it will be some weeks before you receive any communication from HMRC and the grant to which you are entitled. If this delay is going to cause you particular financial hardship, then you may be able to claim Universal Credit (Universal Credit - https://www.gov.uk/universal-credit).
For further information go to GOV.UK and search ‘self employment income support scheme’.
Deferral of Self Assessment Income Tax payments
Income tax payments due on the 31st July 2020 may be deferred until 31st January 2021.
You are eligible if you are due to pay your second self-assessment tax payment on account for 2019/20 on 31st July 2020.
This deferment is optional. If you are still able to pay your second payment on account on 31st July 2020 then you should do so, or you can make monthly payments so as to pay as much of the tax as you are able.
Contd.
Contd.
Deferral of Self Assessment Income Tax payments contd.
This is an automatic offer with no application required by you. No penalties or interest for late payment will be charged if you defer payment until January 2021.
Just one word of caution, if you do defer payment of your second self-assessment tax payment on account to 31st January 2021, then at this time you may also have further tax to pay (i.e. the balance of any tax due for 2019/20 plus the first payment on account for 2020/21). This may perhaps cause cash flow problems at this time although if the current crisis continues, HMRC may announce further measures to help deal with this, maybe a further deferral or a ‘time to pay’ plan.
Deferral of VAT payment
HM Revenue & Customs has announced a VAT payments deferral scheme to further support businesses with cash flow during this COVID-19 pandemic.
This means that all VAT registered businesses have the option to defer their VAT payments due between 20th March 2020 and 30th June 2020. You will have until 31st March 2021 to pay any VAT deferred as a result of this announcement.
This is an automatic offer with no application required by you. You will opt in to the deferral by simply not making any VAT payments due during the above period.
If you wish to defer your VAT payment and you normally pay by direct debit, you will need to cancel the direct debit with your bank. This can be done online if you are registered for online banking. Please ensure that you do this in sufficient time so that HMRC does not attempt to automatically collect payment on receipt of your VAT return.
You can however continue to make payments as normal during the deferral period.
HMRC will continue to pay VAT repayment claims as normal.
You must continue to submit VAT returns as normal.
For more information please go to GOV.UK and search ‘deferral of VAT payment’.
Self-employment Income Support Scheme
If you are self-employed or a member of a partnership and you have lost income due to coronavirus, you may be able to claim a taxable grant worth 80% of your trading profits up to a maximum of £2500 per month for the next three months. This period may be extended if needed.
You will be able to apply for this grant if you are a self-employed individual or a member of a partnership and you:
- have submitted your Self Assessment tax return for the tax year 2018/19
- traded in the tax year 2019/20
- are trading when you apply, or would be except for COVID-19
- intend to continue to trade in the tax year 2020/21
- have lost trading/partnership trading profits due to COVID-19
Your self-employed trading profits must be less than £50,000 and more than half of your income must come from self-employment. If you therefore have other income such as employment income, rental income or pensions, and this other income constitutes more than half of your total taxable income, you will not be eligible to claim under this scheme.
You cannot apply for this scheme yet. HM Revenue & Customs will use the data from your 2018/19 tax return already submitted to identify if you are eligible and will then contact you, presumably by letter, inviting you to apply online. At this point, I do not know if I will receive a copy of that communication so it is important that you let me know when you receive it.
Assuming that you are eligible for this scheme, you will receive a taxable grant of:
- 80% of your monthly net earnings averaged over the three tax years 2016/17, 2017/18 and
- £2500, whichever is the lower, for three months.
Once determined, the grant will be paid directly into your bank account, in one instalment.
You will only be able to access this scheme through GOV.UK. If someone texts, calls or emails you claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it will be a scam.
Please note that you can continue to work during this period and still receive the grant, providing you meet the criteria as set out above.
Unfortunately, this scheme is not going to be ready until early June so it will be some weeks before you receive any communication from HMRC and the grant to which you are entitled. If this delay is going to cause you particular financial hardship, then you may be able to claim Universal Credit (Universal Credit - https://www.gov.uk/universal-credit).
For further information go to GOV.UK and search ‘self employment income support scheme’.
Deferral of Self Assessment Income Tax payments
Income tax payments due on the 31st July 2020 may be deferred until 31st January 2021.
You are eligible if you are due to pay your second self-assessment tax payment on account for 2019/20 on 31st July 2020.
This deferment is optional. If you are still able to pay your second payment on account on 31st July 2020 then you should do so, or you can make monthly payments so as to pay as much of the tax as you are able.
Contd.
Contd.
Deferral of Self Assessment Income Tax payments contd.
This is an automatic offer with no application required by you. No penalties or interest for late payment will be charged if you defer payment until January 2021.
Just one word of caution, if you do defer payment of your second self-assessment tax payment on account to 31st January 2021, then at this time you may also have further tax to pay (i.e. the balance of any tax due for 2019/20 plus the first payment on account for 2020/21). This may perhaps cause cash flow problems at this time although if the current crisis continues, HMRC may announce further measures to help deal with this, maybe a further deferral or a ‘time to pay’ plan.
Deferral of VAT payment
HM Revenue & Customs has announced a VAT payments deferral scheme to further support businesses with cash flow during this COVID-19 pandemic.
This means that all VAT registered businesses have the option to defer their VAT payments due between 20th March 2020 and 30th June 2020. You will have until 31st March 2021 to pay any VAT deferred as a result of this announcement.
This is an automatic offer with no application required by you. You will opt in to the deferral by simply not making any VAT payments due during the above period.
If you wish to defer your VAT payment and you normally pay by direct debit, you will need to cancel the direct debit with your bank. This can be done online if you are registered for online banking. Please ensure that you do this in sufficient time so that HMRC does not attempt to automatically collect payment on receipt of your VAT return.
You can however continue to make payments as normal during the deferral period.
HMRC will continue to pay VAT repayment claims as normal.
You must continue to submit VAT returns as normal.
For more information please go to GOV.UK and search ‘deferral of VAT payment’.
