Self-Employed / Sole Trader

1. SELF-EMPLOYEMENT INCOME SUPPORT SCHEME (SEISS)

Scheme:

SEISS will support self-employed individuals including partnerships businesses whose income has been negatively impacted by current situation. The scheme will provide a grant to self-employed individuals or partnerships, worth 80% of their profits up to a cap of £2,500 per month. The scheme will be open to those where the majority of their income comes from self-employment and who have profits of less than £50,000.

HMRC will use the average profits from the last 3 year tax returns (2016-17, 2017-18 and 2018-19) to calculate the amount of the grant. For eligible individuals who have not submitted their returns for 2018-19, they will have 4 weeks’ notice from the announcement to file their returns, until 23 April 2020, and therefore become eligible for this scheme. The scheme will be open for an initial three months with people able to make their first claim by the beginning of June.

Individuals will pay Income Tax and National Insurance on any payments received through this scheme as they are replacement for income in line with normal practice for benefits or grants that replace income. The grant is recognised as income for the purposes of Universal Credit and Tax Credits and may impact the amount claimants are entitled to.

This scheme is not applicable to those who haven’t submitted 2018/19 tax return or start self-employment after 5th April 2019.

Eligibility:

• To be eligible for the scheme you must meet all the criteria below:
  Be self-employed or a member of partnership and have submitted tax return for 2018/19.
• Have lost trading/partnership trading profits due to COVID-19.
• intend to continue to trade in the tax year 2020-21.
• Have trading profits of less than £50,000 and more than half of your total income come from self-employment.

This can be with reference to at least one of the following conditions:

• Your trading profits and total income in 2018/19
• Your average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19.

across up to the three years between 2016-17, 2017-18, and 2018-19.

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

How to access:

Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.
HMRC will then pay the grant directly to eligible claimants’ bank account. Grants are expected to start to be paid out by beginning of June 2020. For eligible individuals who have not submitted their returns for 2018-19, they will have 4 weeks’ notice from the date of the announcement to file their returns and therefore become eligible for this scheme.

2. DEFFERAL OF SELF ASSESSMENT PAYMENT

Scheme:

The Self- Assessment payment on account, that is ordinarily due to be paid to HMRC by 31 July 2020 may now be deferred until January 2021.

Eligibility:

If you are due to make a self- assessment payment on account on 31 July 2020 then you are eligible for the deferment.

The deferment is optional and any persons still able to pay their second self-assessment payment on account on 31 July 2020 should still do so.

How to access:

This is an automatic offer with no applications required. No penalties or interest for late payment will be charged if you defer payment of your July 2020 payment on account until January 2021.

1. CLAIMING BENEFITS (UNIVERSAL CREDIT)

Scheme:

If you have COVID-19 or are advised to stay at home, you can now more easily make a claim for Universal Credit. From 6 April the requirements of the Minimum Income Floor will be temporarily relaxed. This change will apply to all Universal Credit claimants and will last for the duration of the outbreak.

New claimants will not need to attend the job center to demonstrate gainful self-employment. From 6 April government is increasing the standard allowance in Universal Credit and the basic element in Working Tax Credit for 1 year. Both will increase by £20 per week on top of planned annual uprating.

Further, you are now able to claim Universal Credit, and if required can access advance payments upfront without needing to attend a job center.

Eligibility:

You will be eligible to get Universal Credit if:

• you’re on a low income or out of work
• you’re 18 or over (there are some exceptions if you’re 16 to 17)
• you’re under State Pension age (or your partner is)
• you and your partner have £16,000 or less in savings between you
• you live in the UK

How to access:

New claims: Use following link to apply online (https://www.universal-credit.service.gov.uk/postcode-checker)

Existing claims: If you are existing claimant and have affected by COVID-19, you have to report changes in circumstances on your online portal.

2. SUPPORT FOR RENT COSTS

Scheme:

From April 2020, Government is increasing Local Housing Allowance rates to the 30th percentile of market rents. This applies to all private renters who are new or existing Universal Credit housing element claimants and to existing Housing Benefit claimants.

Eligibility:

You will be able to get Housing support if:

• you’re on a low income or out of work
• you’re under State Pension age (or your partner is)
• you and your partner have £16,000 or less in savings between you
• you live in the UK

How to access:

New claims: Use following link to apply online (https://www.universal-credit.service.gov.uk/postcode-checker)

Existing claims: If you are existing claimant and have affected by COVID-19, you have to report changes in circumstances on your online portal.

3. EMPLOYMENT AND SUPPORT ALLOWANCE (ESA)

Scheme:

You can apply for ESA if you’re employed, self-employed or unemployed.

Most new claims are for ‘new style’ ESA. To get ‘new style’ ESA you need to have both: worked as an employee or been self-employed or paid enough National Insurance contributions in the last 2 to 3 years – National Insurance credits also count.

You cannot get ‘new style’ ESA if you’re getting Statutory Sick Pay (SSP) from an employer. You can apply for ‘new style’ ESA up to 3 months before your SSP ends. You’ll start getting ‘new style’ ESA as soon as your SSP ends.

You could get Universal Credit at the same time or instead of ‘new style’ ESA. Universal Credit can help with, for example, your housing and childcare costs.

Eligibility:

You can apply for Employment and Support Allowance (ESA) if you’re under State Pension age and you have a disability or health condition that affects how much you can work. You can apply whether you’re in or out of work. There are conditions to working while claiming ESA.

You cannot get ESA at the same time as:

• Statutory Sick Pay
• Statutory Maternity Pay
• Jobseeker’s Allowance

You can check eligibility here: https://www.gov.uk/employment-support-allowance/eligibility

How to access:

Universal Credit helpline

Telephone: 0800 328 5644 (choose option 2)

Textphone: 0800 328 1344 (choose option 2)

Jobcentre Plus

Telephone: 0800 169 0350

Textphone: 0800 023 4888

4. NEW ENTERPRISE ALLOWANCE

Scheme:

If you are starting or running your own business, you may be able to get New Enterprise Allowance to help you:

Starting new business

You could get mentoring and an allowance to help you start your own business through New Enterprise Allowance. You’ll get a mentor who’ll give you advice and support to help you set up your business and start to trade. Once you’ve made a business plan that your mentor has approved, you may get a weekly allowance worth up to £1,274 over 26 weeks or you can apply for a loan to help with start-up costs.

Developing your business

If you’re self-employed and getting Universal Credit, you may be able to:

• get a mentor who’ll give you advice and support to help you develop your business
• apply for a start-up loan if your business is less than 2 years old

Eligibility:

You or your partner get Universal Credit, Jobseeker’s Allowance or Employment and Support Allowance.

To find out if you’re eligible for New Enterprise Allowance, contact your work coach by signing in to your Universal Credit account.

How to access:

Talk to your work coach at Jobcentre Plus or work coach by signing in to your Universal Credit account.

5. FREE SCHOOL MEALS

Scheme:

Government has announced support for pupils who have to stay at home if they/or a family member are affected by coronavirus (COVID-19) or school is only open for certain groups or is closed temporarily. Government has asked schools to continue to provide free school meals through following sources:

• an in-house catering team
• a local authority catering service
• a private catering provider
• using other local initiatives – this could be a local school acting as a community hub, or a local charity
• providing families with supermarket vouchers

Eligibility:

Pupils who are eligible and currently in receipt of free school meals, and vouchers should be made available to the parent or the adult with caring responsibility for that child.

How to access:

You have to contact your school for free school meals.

We will continue to share the most up to date information directly with you as it becomes. If you want to discuss above mentioned measures please don’t hesitate to contact us.