Support for self-employed workers
The agricultural sector has a vast number of self-employed partnerships, workers and contractors. A number of businesses will be able to continue working through the COVID-19 restrictions, but some will be hit hard. Yesterday the Government announced some welcome support to these effected workers. This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next three months. This may be extended if needed.
How do I apply?
There is no need to apply for the scheme, if you are eligible HMRC will contact you.
You will qualify if you are 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; and
- 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 your taxable income. This is determined by at least one of the following conditions being true:
- having taxable trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income; or
- 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.
If you have not yet submitted your income tax self-assessment tax return for the tax year 2018-19, you must do this by 23 April 2020 to qualify.
How much will I get?
You will 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
The maximum you will receive is £2,500 per month for three months. This will be paid directly into your bank account, in one instalment. Payments are expected to be made in June 2020.