After much concern and worry for 4.8 million people in the UK who are self employed, Chancellor of the Exchequer Rishi Sunak released some guidance last week on the support available to them.
Mirroring the furloughed scheme, which has been put in place for those who are employed, a package of support has been put together for the UK self employed population. Named the Coronavirus self-employment income support scheme, these new measures will allow self employed people to receive 80% of trading profits capped at £2500.00 a month.
These figures will be ascertained from each individuals tax return, taking an average from 2016-2017, 2017-2018 and 2018-2019 returns. While more information is due to be released on this, there are a number of criteria that a person must comply with in order to be eligible for the support. This includes the need to submit a 2019-2020 tax return, have been trading in the 2019-2020 tax year, continue to trade in the 2020-2021 tax year, and have lost profits due to the virus.
It is understood HMRC will due data from the 2018-2019 submitted tax returns to contact those who are eligible directly and the payments are due out in June in a three month lump sum.
As with all measures put in place over this unprecedented time, they are all subject to review and amendment therefore it is always best to seek the guidance from experts and the Government before taking any action.
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