Government unveils more support for the self-employed
The Scheme will provide a cash grant of 80% of an individual’s average monthly profits over the last three years of up to £2,500 per month. It will apply where individuals:
- Have taxable trading profits of up to £50,000 per annum
- Earn the majority of their income from self-employment
- Are registered self-employed and have submitted a 2018/19 tax return to prove it
The government had previously introduced a number of other measures to help the self-employed and SME business owners. Here is a round-up of some of the most important of these below:
VAT payments have been deferred until 30 June 2020. This is what we know so far:
- All businesses, of any size or sector, can utilise the deferral
- The deferral is automatic with no requirement to apply for the extension
- Businesses will not be required to make a VAT payment during the deferral period
- The VAT return for the period will still need to be submitted on time
- Any VAT repayments arising in the period will still be refunded
- Businesses will have until the end of the 2020/21 tax year to pay VAT liabilities deferred
If you pay your VAT by direct debit, you should cancel this with your bank if you are unable to pay. This should be done in sufficient time so that HMRC does not attempt to automatically collect on receipt of your VAT return.
For Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until 31 January 2021 and no interest will be payable in the deferral.
Time to Pay (TTP) is operated by HMRC with the aim of agreeing arrangements on delaying the payment of tax liabilities. It has been in existence for a number of years, although it has been expanded recently to specifically cover the difficulties caused by coronavirus. The agreements under TTP are reached on a case by case basis and are tailored to individual circumstances and liabilities.
For more information, please contact Tom Gareze on firstname.lastname@example.org or +44 (0)20 7516 2212.
£330 billion of government backed and guaranteed loans on ‘attractive terms’ are available for any business that needs cash to pay rent or salaries etc. This funding is available in two main schemes, both of which are now active.
Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction. No business will be forced out of their premises if they miss a payment up to 30 June, although this grace period may be extended. Note, however, that the rent will remain payable in due course.
For retail, hospitality and leisure businesses, a Business Rates holiday will apply in England for the 2020 and 2021 tax year. Occupiers will not need to take any action to benefit from this, and it will apply to your next Council Tax bill in April 2020.