Following the latest announcement by the Chancellor I have updated the information contained in the last newsletter. I hope it clarifies any confusing and/or inaccurate reporting in all fields of the media.

The most recent announcement has been for the self-employed.  This doesn’t apply to you if you receive a payslip from me every week or month.  It only applies to those clients for whom I complete a Tax Return.  Some clients will fall onto more than one category so if you are in any doubt about your employment status please feel free to contact me.

If you are a landlord, or receive any income derived from the rental of property you will also be exempt from this scheme.  Support for landlords will most likely come in the form of mortgage holidays arranged directly with lenders.

Self Employed Support

Self-employed people do not need to get in touch with HMRC, as the scheme isn’t yet open for applications. HMRC will contact eligible clients by the beginning of June, inviting them to apply.

You can apply if you’re a self-employed individual or a member of a partnership and:

  • have submitted your Income Tax Self-Assessment tax return for the tax year 2018-19
  • traded in the tax year 2019-20
  • are trading when you apply, or would be except for COVID-19
  • intend to continue to trade in the tax year 2020-21
  • have lost trading/partnership trading profits due to COVID-19

Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:

  • having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
  • having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period

If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.

HMRC will use data on 2018-19 returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way.

How much you’ll get

You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable):

  • 2016 to 2017
  • 2017 to 2018
  • 2018 to 2019

To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable) and use this to calculate a monthly amount.

It will be up to a maximum of £2,500 per month for 3 months.

They will pay the grant directly into your bank account, in one instalment.

Support for businesses through the Coronavirus Job Retention Scheme

The government is hoping to have this scheme up and running by the end of April.

As stated above, if you’re a director of your own company and paid through PAYE you may be able to get support using the Job Retention Scheme.

Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis.

This applies to employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as furloughed workers. HMRC will reimburse 80% of their wages, up to £2,500 per month. This is to safeguard workers from being made redundant.

The Coronavirus Job Retention Scheme will cover the cost of wages backdated to 1 March and is initially open for 3 months but will be extended if necessary. HMRC will set out more details shortly.

I will continue to monitor the situation and I will ensure that all clients receive the support they are entitled to.  I will contact you all individually over the coming weeks and months regarding your personal circumstances and I will keep updating everyone when new announcements are made.

Previous newsletters can be accessed from the website.

Take care and stay safe.




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Robin Low
Accountant | Robin J. Low Accountancy Services
p: 0800 9700 427
27 Fountains Close, Washington
Tyne and Wear, NE38 7TA
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