Hello everyone
Happy Friday.
I woke up this morning with a terrible sense of
disappointment… I was dreaming it was Saturday!
I told Robert (one of our colleagues) about this on our
daily call and he said he had exactly the same dream. Strange.
Anyway, today’s update is all about the Self Employed Income
Protection Scheme. We’ve had a few questions in over the past couple of
days (well, three actually) about the scheme and what happens next.
Let’s dive right in –
Current Position
Okay – the scheme is now in two parts – the first grant paid
80% of trading profits (based on an average of three year’s profits) capped at
£7,500. There will be a second grant made available which will pay 70% of
trading profits capped at £6,750. Average profits must have been less
than £50,000 over the years 2017, 2018 and 2019 and have been more than half of
total income.
There are some other criteria: you must have completed a tax
return for 2018/2019 and you traded in that year, you must have traded in
2019/2020 and will continue trading in 2020/2021. Your business must have
been adversely affected by Coronavirus.
You can still work and receive the grant. This is
HMRC’s list of what ‘adversely affected’ means:
You're unable to work because you:
- Are shielding
- Are self isolating
- are on sick leave because of Coronavirus
- Have caring responsibilities because of Coronavirus
- Your supply chain has been interrupted
- You have fewer or no customers or clients
- Your staff are unable to come to work
- One or more of your contracts has been cancelled
- You have had to buy protective equipment so you could trade
In terms of this first grant I want to flag up a deadline…
If you are eligible for the first grant and you haven’t
claimed yet (and you want to claim) you have to do it by 13th
July. Unfortunately I can’t do it for you but here’s the link to make
the claim:
The Next Claim
The scheme has been extended and a second grant will be
available.
The earliest you will be able to claim is 17th
August. As far as we know the claim process will be the same.
To be eligible your business must have been adversely
affected by Coronavirus on or after 14th July 2020.
As far as we know the other criteria remain the same – so
even if your 2020 tax return shows income of more than £50,000 this won’t
affect your ability to claim – the claim amount is based on your 2017, 2018 and
2019 tax returns.
Just a final note on local authority grants
Following Wednesday’s update a few of you have been in touch
to say you were initially turned down for a local authority grant only to
receive a letter out of the blue to say some cash has been awarded.
Money has also turned up in bank accounts so all seems to be
above board!
That’s it for today…
Do check out our Facebook page for 1) a link to our blog
which will feature this email – feel free to pass on to colleagues if you think
it would help and 2) infinitely funnier – Richard’s First Play Friday* choice
for this evening!
Have a fabulous weekend.
Rowena
*First Play Friday – if you haven’t seen the Facebook posts
here’s a precis: Richard bought a record player at the beginning of lockdown
and has been building a new record collection. Each week he buys a new
album and then plays it for the first time on Friday evening. Suggestions
via the Facebook page are always welcome!
