HMRC issues further advice about the Self-employment Income Support Scheme
After weeks of waiting, HM Revenue and Customs (HMRC) has announced further guidance detailing how it will work out total income and trading profits for the Self-employment Income Support Scheme.
A number of questions around how to calculate profits, work out deductible expenses, allow for losses and deal with multiple trades have now been answered. This should mean that most of the self-employed in the UK should now be able to work out how much grant they will be eligible to receive.
Among the points HMRC has clarified are:
- HMRC plans to contact you by mid-May if it calculates you are entitled to a grant under the scheme. HMRC still anticipates this will be paid in early June.
- The grant will initially be for three months
- Losses arising in the years 2016/17 to 2018/19 are deducted from profits before calculating the average profits for the purposes of the grant.
- If you have run more than one business in a year, those profits will be added together, losses deducted from profits, or losses added together as appropriate, to calculate the figure to use for each tax year.
- A list of allowable expenses for trading profits, including office and travel costs, clothing expenses, staff costs, things you buy to sell on, financial costs, costs of your business premises, advertising or marketing, and any training courses related to your business.
We are here to help
Given the nature of the calculation to be carried out by HMRC and the information it will be based on, we recommend you speak to your accountant to see what this may mean for you after using our grant calculator.
To arrange a free initial consultation, please don’t hesitate to call our friendly and experienced team today on 01254 311 318 or drop use our online enquiry form.
Last updated: 23rd September 2020