Being Self-Employed is a particularly difficult at this moment in time.
No one is sure if their job is ‘essential’ and people are desperately trying to justify their business due to a reduced or no income.
The problem with being self-employed of course, you don’t work, you don’t earn. The Money Guy, Adam Phillips explains what you are eligible – please note, this report is for self employed People who are SOLE TRADERS/PARTNERSHIPS – not ltd company directors. Unfortunately, Ltd company owners aren’t eligible for SEISS, but might be able to furlough themselves.
The UK government have came up with an unprecedented finance package, which they claim supports 95% of SME’s (Small to Medium sized enterprises) – there are two levels, money for your business (Grants and loans) and income for your household SEISS (Self – Employed Income Support Scheme) and UC (Universal Credit).
A Grant is, essentially, free money. there is no need or requirement to repay whatever is given to you. The grants available are currently for those businesses in the industry of retail, leisure, hospitality and nurseries. If you are responsible for paying back the business rates, and are eligible for Small Business Rates Relief or Rural Rates Relief, then the local council should be writing to you (if not already) and will be paying out already (some business I know have already started receiving their grant money) imminently.
If your business premises (again in those 4 industry types) is valued between £15k – £51k then you should expect a grant for £25k.
Loans – you will have to repay, however, the government will cover the interest repayments for the first 12months. The rates of interest have been noted to be ‘Favourable’ but what the rate is, will depend on several factors, like industry sector, how much is required, for how long they are looking to repay the loan back and what the loan is actually being used for. The loan available for any business that has been affected directly from the Corona Virus basically.
Income for sole traders is being supported by a scheme aptly named the self-employed income support scheme, you do not have to do anything – YET. HMRC will be writing to you very soon, inviting you to apply for SEISS, if you are eligible. They have forecast that the application system will be available approx. Middle May.
You need to be trading this year and to have filed a self assessment for 2018/2019 tax year. If you haven’t done it yet – DO IT NOW.
If you haven’t traded long enough to file a tax return for 2018/2019 – unfortunately you won’t be eligible for the SEISS scheme and will have to fall back onto the welfare system.
Have you suffered as a business because of the Corona Virus outbreak? – Are you in the know when it comes to what you are eligible for? Please get in contact, we’ll do our best to help you out.
check out the video below for more information!