Today, Rishi Sunak, Chancellor of the Exchequer has unveiled the multi-billion pound financial-aid package to address the economic concerns around the self-employed workers.
The chancellor noted that the SEISS would be available for at least three months and extended if necessary, and that self-employed would be able to claim and continue to do business.
Key points: - The Chancellor told the self-employed workers "You have not been forgotten, we have not left you behind, we all stand together". - The support package covers more than 95% of the people and will be available no later than the end of May or the beginning of June 2020. The money will be paid directly into people's bank accounts from HMRC as a lump sum for all the three months. The grant will be taxable and should be included in the Self-Assessment tax return for 2020-21. - The grant worth 80% of their average monthly profits over the last three years and it is capped at £2,500 per month. That means the grant would be the lower of the 80% of the monthly profit or the £2,500. - The support is only available for the self-employed workers with a trading profit of up to £50,000. Meaning it will include cleaners, housekeepers and mini cap drivers but not high earning professionals such as tech programmers and solicitors. - The tax payment can be deferred to allow more time and financial ease for workers. - The support package targets up to 3.8 million of the 5 million people registered as self-employed as of 31st January 2020. Eligibility: - More than 50% (majority) of the profit should be generated form self-employment - Your trading profit does not exceed £50K - Must have filed the tax return for 2018-19 tax year - This scheme does not apply to contractors operating under limited companies. - Company owners who pay themselves a dividend are not covered. At Avant & Co we are doing everything we can to help our business community. If you would like to discuss how the changes may affect you or your business, please do not hesitate to call us on 020 8951 5713 or email us on info@avantaccountants.co.uk