COVID-19 Pandemic: Government Support for Businesses
I know that many of you are worried about the current situation, and the effect it could have on your businesses. Things are changing very quickly and there are daily briefings from Government at 5pm. The latest Government information and measures being taken can be found on their website.
It should be noted that the exact details of most of the measures being announced are not yet known. I am monitoring the situation closely and will update the document with links and further information once they’re known.
Given the volume of information being shared, and the frequency with which it is changing, I’ll be picking out information that I feel is most relevant to those I work with. The full guidance on support available for businesses in general can be found on the Government’s website.
I’ll be updating the document regularly. Last updated 26th March at 6pm.
Updates from today
The major announcement today related to support for the self employed. Those who became self employed during the 2019-20 tax year (so after 6th April 2019) are unfortunately not eligible and are instead encouraged to apply for Universal Credit. It is not yet clear whether this scheme relates only to sole traders or also sole director limited companies.
- A new taxable grant of 80% of average monthly earnings (up to £2,500 per month) for 3 months.
- Based on the average of the last 3 years’ self assessment returns (or up to 3, if 3 is not available).
- Only applies to those who have submitted a self assessment for the 2018-19 tax return. Late filers have a further 4 weeks in which to submit.
- Those who became self employed during 2019-20 are not eligible.
- HMRC will proactively contact those who are eligible and invite them to apply, and will start doing so after the 4 weeks grace period for late filers is over.
- Payments will be made no later than the beginning of June, and will be a lump sum cover the 3 months.
- Majority of your income must have come from self employment in order to qualify.
- Not yet clear whether this includes sole directors of limited companies.
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