Help for the self employed in COVID times.

1. For the self employed who have dropped income due to COVID, there may be government grants available to help you

2. You can also defer your self assessment tax payment in July 2020 for 6 months - without penalty or interest. 

 

Government grants:

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 altogether.

If you’re eligible and want to claim the first grant you must make your claim on or before 13 July 2020.

This scheme is being extended. You’ll be able to make a claim for a second and final grant in August 2020. Find out more about the extension to the scheme.

If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist.

The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.

You can check online if you are eligible - and get an answer straight away. You only need your UTR (tax reference number) and NI number.  

 

Deferred tax payments: 

"You have the option to defer your second payment on account if you’re:

  • registered in the UK for Self Assessment and
  • finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus

You can still make the payment by 31 July 2020 as normal if you’re able to do so.

HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it’s paid on or before 31 January 2021.

You will still need to submit your Self Assessment tax return to HMRC on time".

 

Full details on links above or via www.gov.uk

Good summary of all of this by Money Saving Expert 

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