COVID 19 Business Help Guide - Page 7



Support for the
self-employed
The scheme will be open to those with
The temporary Coronavirus Business
a trading profit of less than £50,000 in
Interruption Loan Scheme is available
2018-19 or an average trading profit
to self-employed people and offers
of less than £50,000 from 2016-17,
access to loans, overdrafts, invoice
2017-18 and 2018-19 and in order
finance and asset finance of up to
the self-employed to receive up to
to qualify, the self-employed must
£5 million for up to six years. You
£2,500 per month in grants for at least
have more than half of their income
may also be eligible for a business
three months. The scheme will see
during these periods coming from
interruption payment to cover the first
those eligible receiving a cash grant
self-employment. If you are eligible
year of interest and fees on the loan.
worth 80% of their average monthly
for the grant, the money will be paid
trading profit over the last three
directly into your bank account in a
years. This covers 95% of people who
single lump sum instalment covering
receive the majority of their income
all three months.
Approximately five million selfemployed people could be eligible for
a government grant. The plan is for
If is offered by all major banks and
you can apply now.
Other help offered to businesses
include deferring the income tax
from self-employment.
The bad news is that if you are
The scheme has been designed
relatively new to self-employment
after extensive engagement with
you are unlikely to be eligible and so,
stakeholders including the TUC,
if you have not filed a tax return for
the Federation of Small Businesses
self-employed earnings in 2018/19
and The Association of Independent
this grant is not for you. In addition,
Professionals & Self-Employed.
remember that this grant is based
The Self Employed Income Support
on profit and not sales – therefore, if
Scheme is totally new and has to be
you have not made a profit, you won’t
developed from scratch by HMRC.
be able to apply. The good news, is
that you don’t have to stop working to
payment due in July 2020 under
the self-assessment system, to
January 2021. As the government has
removed the minimum income floor
for universal credit, you may also
be eligible to apply for this benefit.
From April 6, a single person aged
over 25 could get a standard monthly
allowance of £409.89.
Limited companies
We appreciate that self-employment
This means the money is unlikely to be
apply for this grant and so even if you
available until June, as HMRC has to
are still working you can still fill in the
have set up a limited company and
develop the new scheme from scratch.
form when you it arrives.
pay yourself a salary and dividend
The application process will begin with
comes in various guises and so if you
through your own company – the Self
HMRC automatically identifying those
Self-employed and earn over £50,000?
Employed Income Support Scheme
people who will qualify for the grant
If you earn £50,000 a year or more
does NOT cover you. Instead, you
and they will be invited to complete
this grant is not for you and you are
should apply for the Coronavirus Job
an online form. Please do not contact
not eligible – however, there are
Retention Scheme, providing you
HMRC as they will contact you.
alternatives.
operate PAYE.
7

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