Tax Insight - Extension of Government Support for the Self-Employed

posted 10 Jul 2020 2 mins

The government has announced that the self-employed will receive another grant to cover June, July and August if their business has been affected by coronavirus.

Who can get the grant? 
If you’re self-employed or a member of a partnership, you should be eligible for a grant representing up to 70% of your average profits if you meet the following criteria:

  • You submitted a tax return for 2018/19;
  • Your business traded during 2019/20;
  • Your business is continuing to trade, or would continue to trade were it not for coronavirus;
  • You intend to continue trading in 2020/21;
  • You have lost trading/partnership trading profits due to coronavirus; and
  • Your trading profits were less than £50,000 and represented more than half of your total taxable income. 

How much will you be paid? 
You’ll get a taxable grant of up to 70% of average profits from tax years 2016/17 to 2018/19. If you became self-employed during those years, HMRC will use the average for the years in which you submitted tax returns. The maximum amount is £2,250 per month for three months, so to get the full amount you would need to have average profits of £38,570 per annum.  Applications for this second and final grant will open in August.

If you have questions about this, please do not hesitate to contact one of the Tax team.