The headlines last week were all about the Job Support Scheme that is replacing the furlough scheme, but an extension to the grant scheme for the self employed was also announced, along with a couple of other changes to help businesses.
What new help was announced?
The self-employed have been able to claim 2 payments from the Government so far.
This new extension provides for 2 more claims to be made, each covering a 3 month period, and in total covering November 2020 to April 2021.
The criteria is the same as before, which is disappointing for those who did not qualify previously, as they still do not qualify. You do not however have to made a claim before to be able to make a claim this time.
You will have to declare that you are currently trading, and that you intend to continue to trade, and also that your business has suffered as a result of Covid-19 in this claim period.
The support offered this time is also significantly reduced, in line with the support being offered to employees and in line with the stated aim of only supporting viable businesses during the Winter months.
The first grant will be paid in a single instalment and will be up to 20% of average trading profits, capped at £1,875. This will cover November to January. No details have yet been announced as to the level of the second grant.
What other help was announced?
The self-employed and others who submit self-assessment tax returns had already been given more time to pay taxes due, with the amount that was due by 31 July 2020 deferred until 31 January 2021.
Now the Government has extended that further and will allow the amount due in January 2021 to be paid over 12 months, (including the amount already deferred from June 2020,) meaning the bill won’t be paid in full until January 2022.
A similar scheme has been set up for VAT. Businesses were able to defer vat due between March and June 2020 until March 2021. They may now opt-in to a scheme which allows this bill to be paid in smaller amounts up the end of March 2022 interest free.
If you would like any more information or assistance with submitting your tax return before the deadline, then do get in touch with Rosie Forsyth at Wilkins & Co.