Key financial support during Covid-19 crisis

Consequently, the detail surrounding the eligibility criteria and application process is limited.

This is particularly the case, where agriculture is concerned.

There are a lot more detailed rules and eligibility criteria to be published by government and, as a consequence, farm businesses should keep in regular contact with their accountant to establish what financial assistance is appropriate to them.

However, the following criteria have been confirmed:

If you are a sole trader or partner in a partnership, you can defer until January 2021, self employed tax due in July 2020. No penalties or interest for late payment will be charged in the deferral period. This is automatic: individual applications are not required.

Firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities may apply to HMRC to defer tax payments. HMRC’s dedicated Help-line is 0800 0159 559.

If you are self-employed and affected by the Covid – 19 crisis, you are able to claim Universal Credit, provided you meet the eligibility criteria. Also from 6 April, 2020, the standard allowance in Universal Credit and the basic element in Working Tax Credit for one year are both increasing by £20 per week on top of planned annual uprating.

New claimants are not required to attend the Job Centre to demonstrate gainful self-employment. You can claim for universal credit online: https://www.gov.uk/universal-credit

If you are an employer, you have obligations to staff in relation to Statutory Sick Pay and employee circumstances.

There are a larger number of very specific rules in these matters in respect of which up to date advice is required.

Directors of their own company paid through PAYE may be able to get support using the Job Retention Scheme.

The government will pay self-employed people, who have been adversely affected by the coronavirus,a taxable grant worth 80% of their average income over the last three financial years, up to £2,500.00 per month.

The scheme is open to individuals with income of £50,000 or less, who make the majority of their income from self-employment .

The scheme is to be processed in June, 2020 by HMRC.

It is suggested that there may be a 3% increase in National Insurance payable by the self-employed.