Following the announcement today, the following relief package has been made available to those who are Self Employed and unable to work due to COVID-19 :
- Up to 80% of average earnings over the last 3 tax years, capped at £2,500 per month.
- Available to all those who earn under £50,000 in taxable profits.
- Available to those who were already in self-assessment and filed a 2019 Tax Return.
They have announced that this will be ready by the start of June at the latest and that HMRC will be in contact with anyone directly that can apply. You will then have a payment made, straight into a designated bank account. The scheme will be backdated to cover 3 monthly payments from 1st March, in line with the PAYE scheme.
The grant does not have to be paid back, but will count as taxable earnings in your next set of accounts.
If you registered for self employment after 2019, or earn over £50,000 in taxable profits, please see our previous post on reliefs that may be available.