Rightly so, there’s been so much talk about how and if small business founders are eligible for the Government’s schemes. So I am here to demystify it all, make sure that you get clued up on all key things you should.
And remember, the Government wants you to claim – it’s not trying to catch you out!
What is the Self-Employed Income Support Scheme?
- A taxable grant worth 80% of average profits over the last three years, up to a maximum of £2,500.
- You must earn more than half of your total income from self-employment with trading profits up to £50,000.
- It is open for three months, but it will be extended for longer if necessary.
- Only those with a tax return for 2019 are eligible.
- Anyone who missed the deadline for submission has an extra four weeks!
- It will be up and running by the beginning of June.
What is the Coronavirus Job Retention Scheme?
- If you’re a company director and pay yourself a salary or dividends you are not covered by the Self-Employed Income Support Scheme, BUT you could get support through the Coronavirus Job Retention Scheme for employees, if you operate pay-as-you-earn scheme.
- You will be able to claim 80% of your monthly salary, up to £2,500 a month.
- You can not then work for the firm, but you can continue to perform your statutory obligations a the Director such as official legal filings.
- The online service you will use to claim is not available yet. The Government expects it to be available by the end of April 2020.
How can I access the Coronavirus Business Interruption Loan Scheme?
- The temporary Coronavirus Business Interruption Loan Scheme is open to self-employed people and offers access to loans, overdrafts, invoice finance and asset finance of up to £5 million for up to six years.
- The Government could also give you a ‘business interruption payment’ to cover the first 12 months of interest and fees on the loan.
- The scheme is now open for applications, and is offered by all major banks.
What about deferring income tax payments?
- If you have income tax payments due in July 2020 under the self-assessment system, you can defer them until January 2021.
What on earth is Universal Credit?
- Universal Credit is a monthly payment to help with your living costs. You may be able to get it if you’re on a low income or out of work.
However hard it feels right now, I believe in you and know that you can do it. Please just double, triple check all that is out there. The Government is not trying to ‘catch you out’ the opposite – it is wanting you to claim if you can.