Latest Information for Self Employed
Please see information for Self employed and note the update below with news of a second grant available.
TWO initiatives have been launched to help self employed people cope with the current health crisis.
It is recognised that many of the self employed have been adversely affected by coronavirus.
There are two different schemes available – one from the United Kingdom Government and one from the Scottish Government.
The UK Government scheme – subject to you qualifying – provides a grant which does not need to be repaid but will be taxable and subject to National Insurance. This is known as the Self Employment Income Support Scheme.
The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 for the 3 month period. This is a temporary scheme, but it may be extended.
Applications open at 8 am on May 16 and more details are available by following the link below: The money is expected to be paid in June and is backdated covering March April and May. You will not be able to apply if your trading profits are above £50,000 and HMRC will check this out by looking at your 2018-19 tax return before deciding if you can apply.
Remember also that Universal Credit which originally was not available to the self employed now is.
Meanwhile, The Scottish Government has launched its scheme for PEOPLE WHO ARE NEWLY SELF EMPLOYED and do not qualify for the UK Government scheme.
Some Scottish self employed people do not qualify for the UK scheme because the UK Government says it cannot work out the profitability for new businesses such as those launching after April 6 2019. This is because HMRC has not yet been sent a self assessment tax return. Therefore the State does not know much about them.
To address this matter, the Scottish Government has launched what it calls the Newly Self Employed Hardship Fund. It is now open.
It has been established to provide a single grant of £2,000. The fund will be managed by local authorities, and applications opened at the end of April with recipients receiving funds in early May.
For the self employed in Glasgow this is the link that takes you to Glasgow City Council’s Newly Self Employed Hardship Fund application page.
SECOND GRANT NOW AVAILABLE FROM UK GOVERNMENT FOR THE SELF EMPLOYED
The UK Government has announced it is now accepting applications for a second grant to qualifying self employed people whose businesses have been adversely affected by the pandemic. This is now being paid.
Known as the Self Employed Income Support Scheme, this grant is up to £6570 and is in addition to the first grant of up to £7500 which was paid earlier in the year.
There will undoubtedly be a number of Elderpark Housing tenants who are self employed and who need to be aware that this money is available from the State to combat the effects if the ongoing health emergency.
Even if you applied for the first Self Employed Income Support Scheme you can also apply for the second.
IF YOU HAVE NOT DONE SO, YOU MUST MAKE YOUR CLAIM BY 19TH OCTOBER
If you’re eligible the second and final grant will be a grant worth 70% of your average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profits.
Both grants are taxable and liable to self employed national insurance. Both are a grant – not a loan and do not need to be repaid.
To work out your eligibility HMRC will first look at your 2018 to 2019 Self Assessment tax return. Your trading profits must be no more than £50,000. Any business with profits more than this will receive nothing.
If you’re not eligible based on the 2018 to 2019 Self Assessment tax return, HMRC will then look at the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019.
Remember, too, that self employed people are now also able to claim Universal Credit.
You can make a claim for Universal Credit while you wait for the grant. The grant may affect the amount of Universal Credit you get.
Remember that you cannot apply to both schemes.