The scheme is open to anyone with a trading profit of less than £50,000 in 2018-19 or an average trading profit of below £50,000 from 2016-17, 2017-18 and 2018-19. More than half of the income of these individuals must have been obtained through self-employment, and to minimise fraud, only those who are already in self-employment will be eligible. HMRC will identify any eligible taxpayers and provide guidance on how to apply by contacting them directly. The advice given is not to contact HMRC at this stage, as following eligibility checks, application invites will be sent once the scheme is operational.
HMRC is designing the income support scheme and it will cover the three months to May. The grants will be paid in a single lump sum instalment covering all three months and will be paid at the start of June.
Anyone who pays themselves a salary and dividends through their own company are not covered by the scheme but will be covered by the Coronavirus Job Retention Scheme if they utilise PAYE schemes.
The Chancellor said:
“Self-employed people are a crucial part of the UK’s workforce who’ve understandably been looking for reassurance and support during this national emergency.
The package for the self-employed I’ve outlined today is one of the most generous in the world that has been announced so far. It targets support to those who need help most, offering the self-employed the same level of support as those in work.
Together with support packages for businesses and for workers, I am confident we now have the measures in place to ensure we can get through this emergency together.”
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HMRC helpline established to assist businesses affected by COVID-19 27 March 2020
For businesses and self-employed individuals who are worried about not being able to pay their tax due to the outbreak of coronavirus, HMRC has set up a dedicated phone helpline to provide support.
There are up to 2,000 experienced call handlers available, and they are on hand to support businesses and impacted individuals where necessary, and any business or self-employed person can use the service to access practical help and advice.
HMRC will discuss the following options with people unable to pay:
Setting up an instalment arrangement Suspension of debt collection proceedings
• •
• The cancellation of penalties and interest where there are administrative difficulties in contacting or paying HMRC immediately
The helpline number is 0800 024 1222, and the opening hours are Monday to Friday 8am to 4pm. The service is not available on Bank Holidays.
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Coronavirus Job Retention Scheme guidance published 27 March 2020
The anticipated guidance in relation to the Coronavirus Job Retention Scheme (CJRS), which will see employers reimbursed for 80% of employee salaries up to a cap of £2,500 per month and associated wage costs for furloughed workers, has been published.
There is information designed to assist employees, and a separate guidance page for employers.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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