The SSIS will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for three months.
This may be extended if needed. Funds are however unlikely to be available before June.
Once HMRC contact you, you can apply if you are:
Your self-employed trading profits must also be less than £50,000 AND more than half of your taxable income (50%) must come from self-employment.
This comparison can be for:
If you started trading between 2016-19, HMRC will only use those years for which you filed a tax return.
If you qualify you will get a taxable grant which will be 80% of the average profits from the tax years (where applicable):
To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount.
It will be up to a maximum of £2,500 per month for 3 months.
They will pay the grant directly into your bank account, in one instalment.
As mentioned above, you cannot apply for this scheme yet.
HMRC will contact you if you are eligible for the scheme and invite you to apply online.
If you claim tax credits you will need to include the grant in your claim as income.
The government is also providing the following additional help for the self-employed:
deferral of Self Assessment income tax payments due in July 2020 and VAT payments due from 20 March 2020 until 30 June 2020
Disclaimer: This note does not contain a full statement of the law and it does not constitute advice. Please seek advice if you have any questions about the information set out above.
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