HMRC releases guide for self-employed, members of partnerships
HMRC has released guidance on the Self-Employment Income Support Scheme targeted at the self-employed or members of a partnership that have been adversely affected by coronavirus.
The scheme allows the self-employed and members of a partnership to claim a taxable grant of 80 per cent of their average monthly trading profits, paid out in a single instalment covering three months, and capped at £7,500 altogether.
This is a temporary scheme, but it may be extended, the HMRC noted.
"If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist," the tax authority explained.
It reminded that the grant will be subject to income tax and self-employed national insurance.
"HMRC will work out if you’re eligible and how much grant you may get," it said.
According to HMRC, eligible entities include self-employed and members of a partnership that traded in the tax year 201-19 and submitted a self assessment tax return on or before 23 April 2020 for that year; traded in the tax year 2019-20; intends to continue to trade in the tax year 2020-21; or that carries on a trade that has been adversely affected by coronavirus.
The HMRC explained that a business could be adversely affected by coronavirus if, for example they are unable to work because they are self-isolating; on sick leave because of coronavirus; have caring responsibilities because of coronavirus; have had to scale down or stop trading because their supply chain has been interrupted or they've lost customers.
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