HMRC have yet to open applications for these grants and as yet we do not know the details of the procedures they will initiate.
However, what we do know are the main conditions they have imposed and these are:
- That you must have traded and submitted a tax return showing your net profits for the year ended 5 April 2019.
- That this profit must be below £50,000 and constitute more than 50% of your total income.
- That you must have continued to trade in the year ended 5 April 2020 and intend to continue to trade for the current year ending 5 April 2021.
- That you must have lost income because of the current lockdown
If these conditions are met the grant will be 80% x 3 x the average monthly profit for the three years to 5 April 2019 (or the date of commencement, if this was after 6 April 2016) and will be paid directly into your nominated bank account.
So, if your profits were say:-
£23,000 to 5 April 2017, £24,000 to 5 April 2018 and £25,000 to 5 April 2019 the monthly average is £72000/36 = £2000 and the grant would be £2000 x 3 x 80% = £4800.
The second payments on account previously due on 31 July 2020 have also been deferred until 31 January 2021.
How Alan Patient & Co can help you
For clients that have signed up with us we will be informing them further for self-employed over the next few weeks with their actual profits so that you can make an application as soon as HMRC open the system which they currently say will be in early June.
For anyone needing this information we have an expert Tax Consultant who has been in constant contact with all our self-employed clients. If you wish to sign up please click here for your free virtual or telephone call consultation click here
Finally, for any further information to help you through this difficult time. contact us.’