DSM Chartered Accountants business news update 2nd June 2020 – Self-Employed Income Support Scheme Grant

 

On 29th May the Chancellor announced a ‘second and final grant’ for the ‘Self-Employed Income Support Scheme’, which is for the 3 months ended 31st August 2020.

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

 

https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-furlough-next-steps

 

The main headlines are :-

 

  • The ‘first grant’ claimable for the 3 months ending 31st May 2020 must be claimed by the deadline of 13th July 2020.  Follow this link to claim :-

https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme

 

  • The ‘second grant’ is 70% of the average 3 months of taxable self-employed profits/losses on the Tax Returns for the previous 3 tax years 2018/19, 2017/18 and 2016/17.

 

  • The ‘second grant’ can be applied for from 1st August 2020. HMRC will likely use the same application link on their website for the ‘first grant’, see 1) above.

 

  • The ‘first grant’ was at rate 80%, so there will be a reduction between the first and second grants.  The ‘first grant’ maximum payable is £7,500 for 3 months. The ‘second grant’ maximum payable for 3 months is £6,570.

 

  • Both the first and second grants exclude anyone with an average annual self-employed taxable profit of over £50,000.

 

  • Individuals can continue to work as self-employed while claiming both grants. It is important to keep your self-employment trading to be eligible to claim the grants.

 

  • Both first and second grants must be included in your ‘taxable income’ for the 2020/21 tax year.

 

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