It's good news for those making claims under the Self-Employed Income Support Scheme as it's now been extended for a further 3 months as of the 1st June 2020! Do you think you could be eligible for the funding? Read on to find out the latest updates for the scheme...
The latest information for the Self-Employed Income Support Scheme
Sole traders and members of partnerships started making claims under the Self-Employed Income Support Scheme on Wednesday 13th May and many have already received their grant.
Unfortunately, unlike the CJRS furlough scheme, claims could not be made by agents on behalf of clients although we can of course check that you have received the correct amount and request a review if the amount is incorrect.
In order to be eligible your self-employed profits in 2018/19 must not exceed £50,000 and must be more than 50% of your total income. If that test is not met, then the same £50,000 and 50% tests are applied to average profits and total income over the three years (or shorter period) to 5th April 2019.
The amount of the grant that can be claimed is 80% of average profits for the three years to 5th April 2019. The grant is capped at £2,500 a month and the maximum amount is £7,500 for the initial 3 month period. The Chancellor has now announced that this scheme would be extended for 3 months from 1st June but reduced to 70% of average profits, limited to £6,570.
There are a number of anomalies, for example if the trade commenced 6th October 2017 the profits for 2017/18 and 2018/19 are divided by 2 to establish an annual profit figure rather than divided by 18 months which we consider to be unfair.
Like the CJRS furlough payments the amounts received are included in your trading profits and thus subject to income tax and national insurance.
Questions? We can help!
As usual, if we can be of assistance please get in touch with us today and let us help you and your business during these difficult times. Contact our Director, Nick Bonnello, directly on 0115 964 8860 or email him at email@example.com to utilise your free, 30 minute consultation and find out how we can help you across all areas of your business.
The views provided in this article are for general information purposes only. Nothing in this article represents advice of any nature whatsoever. Accordingly, RWB CA Limited does not accept any liability or responsibility for the information contained in this article or any decision or other action that may be taken in reliance upon the information contained within it. RWB CA Limited accepts no responsibility for any errors of fact or opinion and assumes no obligation to provide you with any changes to its assumptions.