Friday, 17 April 2020

HMRC issue updated guidance for the Self-employment Income Support Scheme

HMRC have issued further guidance in relation to the grant support scheme for the self-employed. 

The key updates include:

HMRC are aiming to contact self-employed individuals in mid-May, inviting them to make an application.  Payments are expected to be made in June.
Applicants will need to confirm to HMRC that their business has been adversely affected by coronavirus. HMRC have stated they will “as usual use a risk based approach to compliance”. 
HMRC have now confirmed how ‘trading profit’ is defined for the purposes of the scheme.
HMRC have clarified the definition of ‘total income’. A condition of the scheme is that the trading profits are more than 50% of the person’s total income. 
HMRC have confirmed that individuals may also make an application for Universal Credit at the same time as making a claim under the grant support scheme. It is important to note that the support received under the scheme must be declared for the purposes of Universal Credit.
Amendments made to personal tax returns after 26 March 2020 will be ignored for the purposes of establishing an individual’s eligibility.

You can read the full details on the HMRC website here: https://www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme

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