|At Last Help for the Self Employed |
In a long awaited announcement the Chancellor finally revealed his support package for the self-employed. Here’s what he outlined
Self-employed income support scheme
Taxable grant 80% based on average monthly income over the last 3 years up to £2,500 for at least 3 months.Open to anyone with trading profits up to £50,000.Only available if the majority of income is from self-employment and you have submitted a tax return for the tax year 2018/2019, if you have not yet submitted this tax return you have another 4 weeks to submit.Access from the beginning of June and if eligible the money will be paid straight into your bank account as a grant. HMRC will contact the individuals and send out a form to be completed.3 months payment payable in one tranche and back dated to 1.3.2020.Welfare system and universal credit available in the meantime, however there is a 5 week wait for this.
Further detail required
We noted the Chancellor referred to trading profits of £50,000, however HMRC only have the details of taxable profits so we will need to await this guidance.We’re not sure if this covers directors/shareholder companies if registered under self-assessmentAssuming it will cover the last 3 years to 2018/2019, rather than 2019/2020. Money expert Martyn Lewis is having a phone call with the treasury and the details of which he will discuss on his ITV program at 8.30, so watch out for this.
Bank of England update…..
There are potential issues with Business interruption loans. Currently there is a gap of 20% on non-credit worthy companies and the government are working on this.
The Government are also looking to relax the credit criteria, and this is imminent.
Job retention scheme guidance.. .coming soon
We have been reporting confusion with the furlough process all week and a more detailed release is promised for this evening. Watch this space!
Grants for local business are now live!
Some more good news ….One of our clients submitted to her grant application in today and kindly contacted us to let you all know.. Thank you Clare!
Grants are now live in most authorities so check your local authority website under business rates.
If this applies to you we recommend you get your applications in now.
The Cardiff link is below
The Welsh Government Announce…
In addition to the business rate relief scheme, the Welsh Government has announced that an additional £850m will be made available through a new grant scheme for businesses. This will mean that all businesses, which are currently eligible for Small Business Rates relief, that is those with a rateable value up to £12,000, will receive a grant of £10,000.
Retail, leisure and hospitality businesses with a rateable value between £12,001 and £51,000 will receive a grant of £25,000.
If you believe you are an eligible business complete the application form and follow the processes outlined.
We’ll keep updating you daily as more information emerges. In the meantime…
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