KMA Accountancy – Coronavirus Help For The Self-Employed

“KMA Accountancy – Coronavirus Help For The Self-Employed”

 

 

In this video Kim talks about the help and support available to the Self-Employed that was announced on Thursday 26th March 2020!

 

Hi, it’s Kim here from KMA Accountancy, and another short video to help you understand what help is available as a result of the Coronavirus pandemic for small businesses. I’ve spent a lot of time helping my customers and my clients and other small business owners in the locality. It’s amazing how many people have been affected but are struggling to understand how all the help and support that’s out there and distill it down and understand what it means to them. So, today’s video is a quick help guide, if you like, on what’s available for the self-employed.

Okay, so, if you are self-employed then your business structure tends to be that of a sole trader or a partnership. You are not employed, so therefore you don’t class and qualify for the Coronavirus Job Retention Scheme. So the government looked at what help it could give to the self-employed and freelancers, so, they’ve come up with this scheme. Basically, if you are affected by the Coronavirus, you might be a plumber, electrician, somebody who is a sole trader or even partnership who can no longer carry out their work, then effectively what the government has brought out for you is this scheme which will enable you to claim 80% of your average monthly earnings, of what you’ve received in the last three years. Now, if you’ve not been trading for three years, then they will go back as far as you have been trading. So it is going to be based on your taxable profits in the three years to the 5th of April, 2019 so effectively that’s the 16-17, 17-18, and 18-19 tax years. And you did have to submit your tax return.

So, the government don’t, as it stands at the moment, need you to do anything to qualify for this. They will contact you. Now, we’re not sure at this stage how that will be, but we believe they’ll probably write out to you and ask you to complete a form maybe or as I say, who knows at this stage they may just write out to you and tell you what you’re entitled to, but it won’t be paid until June, so you will have to sustain yourself till then. They are very busy, as you can imagine, sorting out the portal for the job retention scheme right now.

So, it’ll be paid in June. It is a grant, so therefore you don’t have to pay it back. You must have submitted your 18-19 tax return. Now all of our clients have, but if you’re listening to this and you haven’t, then when this was announced, which was roundabout the 26th of March, the chancellor gave you a four week window to get that in.

So, you must’ve been trading, and you must have continued to trade in the current 19-20 tax year. Now, clearly, you may have stopped right now because you physically can’t work due to the Coronavirus but the eligibility rules are such that your profits have to be below £50,000 or below. If you are above that, then unfortunately there is no help available to you and your self-employment income has to be at least half of your income or more. Again, if it’s less than half, then you won’t qualify for this scheme.

The idea behind it is it’s to compensate for the loss of earnings. Now as I say, it’s a grant and it is taxable. It will have to go down in your bookkeeping records as income, but obviously you will have had costs.

So, hope that’s been helpful for you. Watch out for my other Coronavirus help videos to tell you what’s available, but that’s what’s on offer in terms of the self-employment help.

Clearly, there is other deferment options, like if you are VAT registered, for example, you can take account of preserving cash by not paying your VAT bill for the quarter from the 20th of March up to the end of June. So, if you’ve got a VAT quarter that finishes, you’re due to submit a about return during that period, you don’t have to pay your VAT, you can defer it. Now, that’s not free money. You do have to pay it back, but you have until the end of March, 2021 to do that, but you must submit your VAT return and if you don’t want to pay your VAT payment, then you must cancel your direct debit, otherwise it will be taken. And so that is what is on offer to you if you are self-employed.

 

So, I hope that’s helpful. If you need any help, just shout.

Otherwise, look out for some more of my videos on what help is available.

KMA Accountancy Business Survival Toolkit

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That’s it from Kim at KMA Accountancy, the most recommended and referred Accountant in South Manchester and Cheshire.

 

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Click the link here to go to our YouTube channel. KMA Accountancy YouTube Channel

 

That’s it for this edition of KMA’s Help videos regarding Coronvirus and help available to small businesses.

If we can help with anything included in this edition or if you’d like to talk to us about anything Accountancy or Business Development, please get in touch.

Call us now on 0161 410 0020.

 

Disclaimer
The comments above do not count as advice on which you should rely on. It is provided for general information purposes only. Professional or specialist advice should always be sought before taking any action relating to the above. We make no representation, warranty, or guarantee that the comments above will meet your requirements. The comments above are subject to change.

 

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0161 410 0020
info@kmaaccountancy.co.uk

KMA Accountancy
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17 Cecil Road
Hale
Altrincham
Cheshire WA15 9NZ

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