Providing you filed your tax return for 2018-19 by 23rd April 2020, you may be able to benefit from the Self-Employed Income Support Scheme (SEISS).
In order to be eligible, you must have trading profits of no more than £50,000 and more than half of your total income must come from self-employment for either the tax year 2018/19 or the average of the tax years 2016/17, 2017/18, and 2018/19.
The scheme will provide a grant, worth 80% of your profits up to a cap of £2,500 per month. More details about the scheme may be found here.
As well as making a SEISS grant claim, if you make payments on account towards your income tax liability which would have been due for payment by the end of July 2020, these can be deferred until the end of January 2021. This is an automatic process and does not need to be applied for.
If you are VAT registered, the VAT becoming due between 20th March 2020 and 30th June 2020 will also be automatically deferred so that the payment won’t be due until 31st March 2021, though you can still pay if you wish. The deadline for submitting the VAT returns has not changed, i.e. it is one month and seven days after the end of the VAT period.
If you are paying HMRC by direct debit and do not want to pay the VAT until next year, you will need to cancel the direct debit or HMRC will take the payment if VAT is due. Please ensure you cancel it in sufficient time so HMRC does not attempt to automatically collect on receipt of your VAT return.
For our latest COVID-19 news and guidance for your business, visit our dedicated Coronavirus Hub.
We will be updating it regularly as we continue to monitor and digest all the latest information
Date published 20 May 2020 | Last updated 20 May 2020This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
We specialise in supporting independent businesses and work with 80,684 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.