Covid-19 Support for the Self-employed
The Chancellor of the Exchequer has announced temporary and targeted measures to support people and businesses through the period of disruption caused by COVID-19.
This includes a package of support for those who are self employed including a Self-employment Income Support Scheme and through deferring Self-Assessment payments on account
Deferring Self-Assessment payments on account
If you are due to make a self-assessment payment on account by 31 July this year but will have difficulty in doing so by then due to the impact of COVID-19, then you may defer (delay) payment until January 2021.
In order to be eligible to defer you must be due to pay your second self-assessment payment on account on 31 July. You do not need to be self-employed to be eligible for the deferment. This means that anybody who completes a self-assessment tax return can defer the payment.
You do not have to defer and the Government have said that ‘if you are still able to pay your second payment on account on 31 July you should do so.’
Please note that deferral only applies to payments and not returns. All self-assessment tax returns still have to be made by the normal filing deadline dates.
How can I access the scheme?
You do not have to apply for this offer and no late payment penalties or interest will be charged if you defer your payment until 31 January 2021.
You can also set up a budget payment plan during this deferral period which may help you make the deferred payment on account when it comes due.
If you are experiencing temporary financial distress as a result of COVID-19 more help is available from HMRC’s Time to Pay scheme.
Self-employment Income Support Scheme
This Scheme (SEISS) is aimed at you if you are self-employed (and includes members of partnerships) who have lost income due to COVID-19.
You will be able to claim a taxable grant worth 80% of your trading profits for the next 3 months. This may be extended if needed and is capped at a maximum of £2,500 per month.