If your company has been affected by coronavirus, you may be able to get government cash, for instance if you are income due having to stop working to take care of others.
You will get from the government 80% of your average profits for 3 months up to a limit of £ 7,500. This is called the Income Support Program for Self-employment.
You’re not going to have to pay back the money, but you’re going to have to pay tax on it.
The government has said that you will be eligible to apply for a payout from 1 February 2021 to 30 April 2021 to offset the revenue you have lost.
In order to offset the income you missed before 1 February 2021, you cannot apply for money.
If you need to self-isolate yourself
The law states that you must stay at home and separate yourself if:
The NHS advises you to self-isolate you or someone you live with tests positive for coronavirus because someone you have contact with has coronavirus.
You may be entitled to get a self-isolation allowance of £ 500 from the local council if you can’t work from home. As well as a payment from the Self-employment Income Support System, you will get this.
You should verify whether a self-isolation allowance or other advantages can be received.
Check if you are eligible for the Income Support Program for Self-employment
If you’re self-employed or a member of a partnership, you can use the scheme. Your self-employed earnings must not exceed £ 50,000 a year and at least half of your overall income must be made up of them. If you are not sure that you can review the rules on GOV.UK, the government can look at your tax returns and see if you are eligible.
Due to coronavirus, you will need to anticipate a substantial profit loss between 1 November 2020 and 31 January 2021. This may be attributed to either:
For example, if you have less clients than average, you have less demand –
For example, if you have to stop working to look after someone, you have to temporarily stop trading.
To demonstrate how you have been affected by coronavirus, you should maintain some proof so that you can claim that you have lost income.
You’ll have to:
- In the tax year 2019-2020, self-employed work was performed
- Planning to do self-employed jobs in the 2020-21 tax year
- In the tax year 2018-19, you would definitely also need to have done self-employed work and filed your tax return. You can review the scheme rules on GOV.UK if you have not done self-employed work in 2018-19.
Check out how much you get
How much you can get based on your self-employed earnings will be determined by HMRC. In order to cover missed sales for 3 months, you will get 1 bill.
You can read more about the laws of the framework on GOV.UK
Applying for the Income Support Scheme for Self-employment
On GOV.UK, you can apply for the scheme.
You should check how to contact HMRC for assistance on GOV.UK if you can’t apply online.
They say they will pay you within 6 working days if HMRC approves your application.
You should check what advantages you can get if you need money while you’re waiting.
You’re able to keep working and still get the scheme’s income. Often, you can get another job somewhere else as an employee. But you need to recall:
If you intend to continue trading in this tax year, you will only be eligible for the scheme – if you apply, you may have to pay the money back and then stop selling the money you get from the taxable income system, so you may end up paying more tax
If you’re having trouble with your payments
For example, if you think you have not been paid enough, tell HMRC as soon as possible. On GOV.UK, you can search how to contact HMRC.
If you feel that you have been paying too much or that you should not have been paid at all,
You need to inform HMRC and pay back the money to GOV.UK. You can find other ways to contact HMRC on GOV.UK if you can’t tell them online.
If, by PAYEE, the business pays people
Under the Coronavirus Work Retention Program on GOV.UK, you can seek a grant to pay them 80 percent of their salaries.
You would also be able to use the Business Interruption Loan Program on GOV.UK if you need help when you are waiting for money from the Coronavirus Work Preservation Scheme.
Check for a scam
Make sure that you only use trusted sources of coronavirus data.
If you see coronavirus emails from someone you don’t know, don’t click or pay for anything on any links.
If someone asks you to, never transfer your cash into a ‘secure account’ – even if they say they’re from the police or your bank.