Self Employed Income Support Scheme
This was announced last night.
Details are evolving, but this is what we know:
• a taxable non repayable grant for Self Employed and Partners – not company directors
• only available if your average profits over 16/17, 17/18 and 18/19 less than £50,000
• grant is 80% of average profits over 16/17, 17/18 and 18/19 to a maximum of £2,500 / month (believe this is 80%
of £2,500 – punctuation not clear on Government website)
• scheme lasting three months initially
• the averaging year rules adjust if you started Self Employment in that period
• Self Employment must be the majority of your income (over 50% of total income)
• payments to be made from June onward as one lump sum
• no restriction on continuing to work
Company Directors / shareholders not covered. In theory can claim the Coronavirus Job Retention Scheme grant at 80% of salary but:
• salary only not dividend
• can’t continue to work whilst claiming
It seems like directors of small companies with a traditional small salary/high dividend split, including freelancers / contractors working through Personal Service Companies, are being badly – arguably unfairly – overlooked.
Deferral (delay) of VAT payments due to Coronavirus
HMRC have published details on VAT deferral scheme for businesses.
– You don’t need to apply, it’s automatic
– But you will need to cancel your existing Direct Debit
Paul has been engaged in the accounting profession since 1988 after leaving the University of Manchester with a BSc (Hons) in Computer Science & Accounting. He qualified with Price Waterhouse Coopers in 1991. After a successful period in industry and a spell working in a local firm of Chartered Accountants, Paul decided to go it alone and established Haywards in 1994. In his spare time, Paul enjoys going to the gym, running, learning guitar and tormenting his Jack Russell, Arnie, and his Jackapoo, Stig. Along with his daughter (his wife hates football!), Paul is also a keen, but distressed, Wigan Athletic fan.