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Support for self employed coaches & grooms during the Coronavirus (Covid-19) outbreak

27 March 2020

Please note, while the guidance is current at the point of publication, it may quickly be superseded following further government updates, or changes to the situation. Please bear with us while make these changes.
 

The Government have announced a package for the self-employed on 26/03/2020.

This support is available for those who are registered as self-employed with HMRC and have submitted a 2019 self-assessment.

The details

The Self-Employment Income Support Scheme is only open to those who report trading profits through Income Tax Self-Assessment.

Self-employed individuals who are owner-managers and pay themselves a salary through PAYE will be eligible for support through the Coronavirus Job Retention Scheme.

The scheme also applies to members of partnerships.

Self-employed workers can apply for a grant of up to 80% of their average monthly profits based on the last three years of up to £2,500 per month.

The scheme will cover three months’ earnings with the first lump sum payments to be made in June 2020.

The scheme will cover 95% of all self-employed individuals who get the majority of their earnings from self-employment with trading profits of up to £50,000 in 2018-2019 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19.

Individuals that have not filed their tax return for 2019 and will receive an additional 4 weeks from today so that they can be eligible for the scheme.

The new support scheme is structured as follows:

  • It will be based on the average earnings from the last three years;
  • If you have fewer years accounts they will take the average of the years you have.
  • Will be available to individuals whose self-employed income is averaged at £50,000 or below.
  • The majority of your earnings have to be derived from self-employment.
  • You must have been self-employed and have filed a tax-return in 2019.
  • If you haven’t filed a 2019 tax-return you have until 23 April 2020 to file your 2019 return.

Grants will be paid in a single lump sum instalment covering all 3 months, and will start to be paid at the beginning of June.

There is no need to apply – HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational. They will contact you direct with a form to complete and make payments directly in to your bank account.

A payment of 80% of your average monthly profit based on the average of the last three years will be paid for three months, capped at £2,500 per month. The payments are subject to tax.

  • In addition Government has provided the following support for the self-employed;
  • Tax payments that were due to be paid in July 2020 can be deferred until January 2021. While this tax still needs to be paid it will help short-term cash flow.
  • Before grant payments are made, the self-employed will still be able to access other available government support for those affected by coronavirus including universal credit and business continuity loans where they have a business bank account.
  • The self-employed are able to access Universal Credit and welfare support.

Further details of the scheme are available here: https://www.gov.uk/government/news/chancellor-gives-support-to-millions-of-self-employed-individuals

Frequently Asked Questions

How do I access it?

HMRC are working urgently, we expect people to access it no later than the beginning of June. If eligible, HMRC will contact you with an online form, they pay the grant straight to your bank account.

To make sure no one who needs it misses out on support, anyone who missed the filing deadline in January, has until 23 April 2020 to submit their tax return.

There is no need to apply – HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.

I am employed and self-employed?

This scheme is only open to those who make a majority of their income from self-employment.

How soon will I have access to the money?

Grants will be paid in a single lump sum instalment covering all 3 months, and will start to be paid at the beginning of June.

Do I have to be registered with the HMRC?

Yes you do.

If you are not registered as self employed with HMRC then you do not qualify for this support. We recommend that you look at applying for Universal Credit.

What happens if I only recently registered with HMRC?

To apply for this support you need to have been registered as self-employed and have a tax return for 2019.

If you fall outside of this time frame then you will need to apply for Universal Credit.

I am not sure if I am registered with HMRC

To be self-employed you will be registered with HMRC, submit your own tax return and pay your own National Insurance/Income Tax.

If you are not registered as self employed, then unfortunately this Government support is not available to you and you will need to register for Universal Credit.

What is universal credit and does it apply to me?

Universal Credit is government support for those who don’t qualify for the self employed, or employee packages.

You could get Universal Credit on the basis of remaining at home on government advice:

  • If you don’t qualify for Statutory Sick Pay or Employment and Support Allowance or
  • you need additional help on top of SSP or New-style ESA.

As there is at least a five-week wait before you get Universal Credit, you can get help from day one through a Universal Credit Advance Payment. Advance payments have to be paid back out of your Universal Credit payments .and must be paid back within 12 months.

People who need to claim Universal Credit because of coronavirus will not have to produce a fit note. Universal Credit is claimed online. Self-employed claimants on Universal Credit who are required to stay at home or are ill as a result of coronavirus will not have a Minimum Income Floor (an assumed level of income) applied for a period of time while affected.

Further information

CORONAVIRUS (COVID-19) ADVICE & INFORMATION FOR EQUESTRIANS

Please read our information and advice for horse owners and business owners during the Coronavirus (Covid-19) outbreak

 

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