Updated Information on how small businesses and the self-employed can weather Covid 19 – November 25th, 2020

The third instalment of the Self-Employed Income Support Scheme can be claimed from November 30th, 2020. The government have released further guidance in terms of eligibility for the grant. You will be able to claim the grant up to January 29th, 2021.

This taxable grant will be worth 80% of your average monthly trading profits and paid in one instalment of up to £7,500.

Existing criteria:

  • you must be a self-employed individual or a member of a partnership – you cannot claim this grant if you trade through a limited company or a trust
  • you must have traded in both the 2018/2019 and 2019/2020 tax return
  • you must have submitted your Self-Assessment Tax Return for the 2018/2019 tax year on or before 23/04/2020
  • your trading profits for the 2018/2019 tax year must be no more than £50,000 and at least equal to your non-trading income
  • if you are not eligible based on the 2018/2019 tax return, the government will also look at 2016/2017 and 2017/2018 tax years.

New criteria:

  • you must either currently be trading but are impacted by reduced demand due to coronavirus or have been trading but are temporarily unable to do so due to coronavirus
  • you must intend to continue to trade
  • reasonably believe that there will be a significant reduction in your trading profits – you can read about what the government believes to be considered reduced demand by going here: https://www.gov.uk/guidance/how-your-trading-conditions-affect-your-eligibility-for-the-self-employment-income-support-scheme
  • your business must have been affected by coronavirus since 01/11/2020 up to 29/01/2021 with your profits having been significantly reduced
  • the grant is subject to income tax and National Insurance and must be reported on your 2020/2021 Self-Assessment Tax Return
  • you must keep evidence of your reduction in profits – your accounts which show a reduction in activity compared to previous years, records of reduced or cancelled contracts/appointments, a record of dates where you had reduced demand or capacity due to government restrictions, a record of dates you had to close due to government restrictions, NHS Test and Trace communications if you’ve had to self-isolate, letter or e-mail from NHS asking you to shield, etc.
  • if your reduction in profits is due to increased costs (for buying facemasks and cleaning supplies for example), this will not be considered as reduced demand

There are some examples of reduced demand on the government website which you can find here: https://www.gov.uk/guidance/how-your-trading-conditions-affect-your-eligibility-for-the-self-employment-income-support-scheme#examples

I am continually monitoring the updates that the government and other business-related departments release and will continue to share that information for as long as I feel that it is beneficial to all businesses in the UK.

The information and policies are continually being updated by the government, so I urge you to keep on top of the information by visiting the relevant website for your area.

UK:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Scotland: https://www.gov.scot/coronavirus-covid-19/
Wales: https://gov.wales/business-and-employers-coronavirus
Northern Ireland: https://www.nibusinessinfo.co.uk/

I will be trying to keep myself as informed as possible and will share relevant information on my fb business page: https://www.facebook.com/ihelmenterprises/

Are you a UK Business Owner and use QuickBooks Online Simple Start, Essentials or Plus?  Are you unsure of how to use the software correctly?

If so, why not take a look at the 5-Day Online Video Training Course I have created to help UK Business Owners learn how to use the basic features of QuickBooks Online?

Over the course of 5-days, you will be guided through how to set up your products and services, how to set up for VAT, how to invoice customers and receive payments, how to track purchases and expenses, how to properly use the bank feed, and how to access some of the most common reports that every business needs.  You will have access to this course for life, so you can work at your own pace and keep going back to it!

Until January 17th, take advantage of the special launch price of just £29.00!  After the offer has ended, the course will cost £79.00.

Visit: https://courses.ihelm-enterprises.co.uk/courses/the-basics-of-quickbooks-online-a-5-day-training-course/ to read more about the course and buy it today!


.