{"id":3567,"date":"2020-03-27T00:00:00","date_gmt":"2020-03-27T00:00:00","guid":{"rendered":"https:\/\/hebblethwaites.com\/index.php\/self-employed-income-support-scheme\/"},"modified":"2020-03-27T00:00:00","modified_gmt":"2020-03-27T00:00:00","slug":"self-employed-income-support-scheme","status":"publish","type":"post","link":"https:\/\/hebblethwaites.com\/index.php\/self-employed-income-support-scheme\/","title":{"rendered":"Self-Employed Income Support Scheme"},"content":{"rendered":"<p>The long-awaited statement from the Chancellor, Rishi Sunak regarding COVID-19 support for the self-employed has been announced. The Chancellor said that the scheme will benefit some 95% of people whose main income source is derived from self-employment.<\/p>\n<p>A list of the scheme features as announced, and published, are as follows:<\/p>\n<ul>\n<li>Those that qualify will receive a cash grant from HMRC based on 80% of profits, up to &pound;2,500 per month,<\/li>\n<li>The initial grant will be for the three months, from 1 March through to the end of May 2020, but could be extended for a longer period.<\/li>\n<\/ul>\n<p>To be eligible, the following conditions will be taken into account:<\/p>\n<ul>\n<li>Applicants must be self-employed or a member of a trading partnership,<\/li>\n<li>Have lost trading profits due to COVID-19,<\/li>\n<li>Have filed a tax return for 2018-19. Late filers will have four weeks from 26 March 2020 to do so,<\/li>\n<li>Have traded in 2019-20; be currently trading at the point of application (or would be except for COVID-19) and intend to continue to trade in the tax year 2020-21,<\/li>\n<li>Have trading profits of less than &pound;50,000 and more than half of total income from self-employment. This can be with reference to at least one of the following conditions:\n<ul style=\"list-style-type:circle\">\n<li>Your trading profits and total income in 2018-19,<\/li>\n<li>Your average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>There is no need to apply to HMRC as they will contact you if you are eligible. HMRC will use existing data to make this judgement. The initial three-month grant will be paid directly to a nominated bank account in a single lump sum. The grants are expected to be paid out at the beginning of June. The reason for this delay is likely down to three main factors: the 4 weeks additional filing time for late filers, the requirement to set up a complex new system at the same time as the Coronavirus Job Retention Scheme and to reduce the risk of fraud.<\/p>\n<p>It is assumed that those self-employed who have experienced a significant drop in income due to COVID-19 disruption will need to apply for Universal Credits or Business Continuity Loans to tide them over until June. This will be a challenging time for those affected as the demand for help will place significant challenges on the institutions charged with providing this support.<\/p>\n<p><strong>CORONAVIRUS JOB RETENTION SCHEME (CJRS) &ndash; update for director shareholders<\/strong><\/p>\n<p>There has been uncertainty as to the position of director\/shareholders claiming under the CJRS as their income is usually taken from their company as a combination of a low salary and dividends. In the news story published following the Chancellor&rsquo;s statement on 26 March (regarding the Self-employed scheme) is a telling paragraph. It says:<\/p>\n<p><em>Those who pay themselves a salary and dividends through their own company are not covered by the scheme (the Self-employed Scheme) but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.<\/em><\/p>\n<p>This infers that directors will only be eligible for the CJRS based on their salary alone, and only if there is a proven PAYE record.<\/p>\n<p>Further details of the CJRS are due to be published imminently and will be added to our newsfeed as soon as they are available.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>The long-awaited statement from the Chancellor, Rishi Sunak regarding COVID-19 support for the self-employed has been announced. The Chancellor said that the scheme will benefit some 95% of people whose main income source is derived from self-employment. A list of the scheme features as announced, and published, are as follows: Those that qualify will receive [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"class_list":["post-3567","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/posts\/3567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/comments?post=3567"}],"version-history":[{"count":0,"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/posts\/3567\/revisions"}],"wp:attachment":[{"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/media?parent=3567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/categories?post=3567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/tags?post=3567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}