Covid-19 Self Employed Support Update - 25/03/2020
Okay, so here's a quick update for the support that's available for self employed people.
At the moment, MP's are currently looking at delivering more support to Self Employed under a new Statutory Self Employment Pay Scheme. I know a lot of you have seen the parliamentary bill and are sharing this on Facebook etc.
What this will mean, if it goes through as it stands, is that you'll either get your average net monthly earnings from the past 3 years OR or £2917 per month...whichever is the lowest of those two. But we're still waiting for that to be announced (set to be announced on 26/03/2020)
Income tax deferment.
So, basically, if you were meant to be paying tax on the 31st of July 2020 (you're balancing payment) You now don't have to pay that until the end of January 2021. You do not need to apply for this, it's just automatically in effect so you can use the money that you'd put aside to help with your cash flow.
And there's the Time to Pay scheme, which means that if you've got outstanding tax liabilities, you can call 0800 0159 559 and make a payment arrangement. This is on a case by case basis.
The other option that is available is access to, "the welfare system"
So that means Universal Credit or Employment and Support Allowance, which they've brought up to the equivalent of statutory sick pay, which is currently £94 a week.
If you're VAT registered, then VAT payments are being deferred until after July 2020.
and you're given until the end of your tax year to pay whatever vat you owe.
Lastly, there's the Coronavirus Business Interruption Loans Scheme (CBILS) which is a loan not grant. So you have to pay it back! But it is interest free for 12 months, which is great! You will be able to apply via the bank BUT this is not available yet as the banks are waiting for details from the Government.
For those businesses occupying premises there is the business rates grant but i'm not going to go into that in this blog as this blog is intended more for self employed people who work from home, or haven't got a business address or shop.
So there you go. Keep checking back for updates or sign up to our newsletter.
Stay safe & Stay at home if you can