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Submit Your Late 2018/2019 Tax Return or You May Miss out on the Financial Support Package for the Self Employed

3 min read
By : Simon Roberts

The Coronavirus is fast becoming the most important issue in terms of healthcare, politics and economics.

After the government announced stringent measures to stop all non-essential work, millions of workers are now unable to leave their homes and unable to work. Even those who could work may be suffering from the knock on effect of other businesses not operating and as such are also sat idle.

Whilst the Government’s scheme to aid employees had been well received and should allow most employees to feel comfortable that the virus will not be too punitive for them financially, it was left  for a few further days to decide how the self-employed would be helped.

It was announced by the Chancellor, that there would be a taxable grant scheme, that would make payments to people in June 2020.

This measure is in addition to the tax deferrals that were already announced.

There are an estimated 4.5 million self-employed workers in the UK and of course a line for qualification would need to be drawn somewhere, although the Chancellor estimates that 95% of the self-employed will be eligible.

 In outline you may be eligible if you;

  • have submitted your Income Tax Self-Assessment tax return for the tax year 2018-19
  • traded in the tax year 2019-20
  • are trading when you apply, or would be except for COVID-19
  • intend to continue to trade in the tax year 2020-21
  • have lost trading/partnership trading profits due to COVID-19

Further to the above your self-employed trading profits must represent more than 50% of your income and be no more than £50,000.

If you have not submitted your 2018/2019 tax return which was due by 31 January 2020, you will not be eligible.

However, if you submit your return by 23 April 2020, you can be considered for access to the scheme.

This could be incredibly valuable as the initial payment in June 2020 can be up to £7,500.

Please do contact me urgently (simonr@hentons.com) if you need to do your tax return for last year.

We will make sure that, if you can supply us with the information to do so, your return is submitted by 23 April 2020.

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