Ireland's Electrical Magazine Issue82


Covid-19 financial support for self-employedelectricians –NI andROI


T he UK and Ireland governments continually update the covid-19 financial support measures available to self-employed electricians and other trades. To make it easier for you to check what you are currently entitled to (north or south), we asked business advisers, PKF-FPM, to put all the latest support measures information in one place for you to access. Read on… NORTHERN IRELAND The UK Government announced a critical package of support to protect the jobs of self-employed workers across the UK as a result of the Coronavirus pandemic. Self-Employment Income Support Scheme (SEISS) The scheme’s first grant provided a taxable cash grant of 80% of an individual’s average monthly profits over the last three years of up to £2,500 per month and the second grant provided for 70% an individual’s average monthly profits over the last three years of up to £2,190 per month. While the final date for applying for both the first and second SEISS grants has now passed, the government announced a further extension in the form of an additional two grants, each available for the periods covering November 2020 to January 2021, and February 2021 to April 2021. Grants will be paid in two lump sum instalments, each covering a three-month period.

To be eligible for this extended support, self-employed individuals, including members of partnerships, must: • Have been previously eligible for the Self- Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants). • Declare that they intend to continue to trade and either: • Are currently actively trading but are impacted by reduced demand due to coronavirus. • Were previously trading but are temporarily unable to do so due to coronavirus. To have been eligible for the initial two grants, and therefore eligible to apply for the extended supports, individuals and members of partnerships must have met the following criteria: • Trading profits of less than £50,000 in 2018/19 or an average trading profit of less than £50,000 from 2016/17, 2017/18 and 2018/19 tax years. • Using your tax returns, HMRC will calculate your trading profits by taking turnover less any allowable business expenses and capital expenditure. Note allowable expenses include capital allowances, flat rate expenses, qualifying care relief and business expenses deducted through the trading allowance. HMRC will not deduct any losses carried forward from earlier years from your trading profits. • More than half of their income in these periods must come from self-employment. • They must have traded in the 2019/20

tax year, are continuing to trade when they apply for the scheme (or would be except for Covid-19), intend to continue to trade in the 2020/21 tax year and they have lost trading profits due to Covid-19. • They have submitted an Income Self- Assessment Tax Return for 2018/19 tax year. Level of support The first grant - as part of this extension - will cover a three-month period from 1 November 2020 until 31 January 2021. The UK government announced on November 5, that it will increase the support available to the self-employed to mirror the extension to the furlough scheme. Rishi Sunak announced the UK government will provide a lump sum taxable grant covering 80% of three months average trading profits, capped at £7,500 in total. This is a further increase on the 55% previously announced. Claims in respect of the new extended supports, which are taxable income and subject to National Insurance contributions, can be made online from November 30, 2020. The second grant will cover a three- month period from February 1, 2021 until April 30, 2021, with the government to confirm the level of support to be provided in due course. VAT Payment deferral Self-employed who deferred VAT due from March 20, to June 30, 2020, can also avail of further government support.



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