What are the Advantages of Online Bookkeeping Services?
May 5, 2020How the VAT MOSS scheme works
May 5, 2020How can self-employed / gig workers survive during this distressing time of Covid 19?
The Chancellor has rapidly put together a Covid relief package , Self Employed Income Support Scheme (SEISS)
A taxable grant can be claimed worth 80% of trading profits and amounting to not more than £2500 monthly. This will be available for 3 months for now. National Insurance Contributions and Income Tax on the grant are still payable but the grant itself doesn’t have to be paid back
Who is eligible?
All self-employed individuals or individuals in a partnership are eligible under the following criteria:
- they have Submitted Self Assessment tax return to HRMC for 2018 to 2019 or filled in SA100 which can easily be done through online bookkeeping
- Traded in 2019 to 2020
- Currently trading or unable to due to Covid 19
- Have an intention to resume trading in 2020 to 2021
- Lost trading profit because of Covid 19
At the present time it`s not possible to claim but HMRC will announce Covid package by mid May 2020. HMRC will then send out invitations to make the claim through GOV.UK online services.
In the case of gig workers, who haven`t filed accounts, SEISS will not be possible .
HMRC have given a “quicker and easier” access to Universal Credit from day one as announced by the Chancellor. The amount of universal credit will depend on income.
Lastly if a self-employed individual pays themselves under PAYE through their payroll then they can acquire support from Coronavirus Job Retention Scheme. Moreover, the Temporary Coronavirus Business Interruption Loan Scheme can also provide support to individuals whose profits are worth £50,000 or more.
Alison Brown
Partner at DSK Associates
DSK Associates provides a full range of online accountancy services
