If you are a sole trader (self employed), the Government has proposed an amendment to the Coronavirus Bill which could be beneficial to you!
If approved (which we think is likely), it will provide a guaranteed income of up to 80% or £2,917, whichever is lower, of your monthly net earnings. This will be averaged from your last three years declared earnings.
To view the full bill, CLICK HERE.
Currently, there is very limited information available. We are yet to find out details of how to apply, the parameters or requirements, but this will probably be via the HMRC.
We do know, however, that Income Tax payments, which are due in July 2020 under the Self-Assessment system, will be deferred to January 2021. This will be applied automatically, and no applications are required. There are no penalties, or interest, payable for late payment that will accrue during the deferral period. We also understand that HMRC have also increased their parameters to all Companies allowing further time to make tax payments where they are in temporary financial distress, resulting from Covid-19, and have outstanding tax liabilities.
In relation to VAT, the deferral will apply from 20 March 2020 until 30 June 2020. This will be applied automatically.
Again, this is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. It is less clear for those on an annual VAT Payment Scheme.
VAT refunds and reclaims will be paid by the government as normal.
We are waiting to hear further in relation to the proposals to financially assist self-employed persons, but as and when the details are released, we will keep you updated.
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