DIVERSET
Ferrari House
258 Field End Road
Ruislip, Middlesex
HA4 9UU
020 7148 1552
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COVID - self employed support

GOVT SELF EMPLOYED WORKERS SCHEME
DIVERSET Circular for clients
Updated 27 March 2020

 

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 a cash grant from HMRC based on 80% of profits, up to £2,500 per month,
     • 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.

 

To be eligible, the following conditions will be taken into account:
     • Applicants must be self-employed or a member of a trading partnership,
     • Have lost trading profits due to COVID-19,
     • Have filed a tax return for 2018-19. Late filers will have four weeks from 26 March 2020 to do so,
     • 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,
     • Have trading profits of less than £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:
               o Your trading profits and total income in 2018-19,
               o Your average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19.

 

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.

 

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.

 

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Diverset is the trading name of Diverset Limited, a limited company registered in England and Wales with registration number 03729499, whose registered office is at Ferrari House, 258 Field End Road, Ruislip, Middx, HA4 9UU
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