You will be able to claim a taxable grant of £2500 which should be equal to 80% of less of your trading profits, for the next three months. This may be extended if needed. 

Who can apply 

You can apply if you’re a self-employed individual or a member of a partnership and you: 

  • have submitted your Income Tax Self-Assessment tax return for the tax year 2018-19 
  • traded in the tax year 2019-20 
  • are trading when you apply, or would be except for COVID-19 
  • intend to continue to trade in the tax year 2020-21 
  • have lost trading/partnership trading profits due to COVID-19 

Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true: 

  • having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income 
  • having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period 

If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return. 

Company debts, help is at hand.

How much you’ll get

You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable):

  • 2016 to 2017
  • 2017 to 2018
  • 2018 to 2019

To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount.

It will be up to a maximum of £2,500 per month for 3 months.

If you would like more information or are looking for more support for your business, please contact us at; info@mayfairwealthadvisors.co.uk  

Contains public sector information licensed under the Open Government Licence v3.0.