So – here it is… It is not perfect but it goes a long way.
Points to note:
The time period – you submitted self assessment 2018/19 – you are still trading 2019/20 – you intend to trade 2020/21 AND – you have lost trading profits due to COVID-19.
The profit limit – EITHER – 2018/19 less than £50,000 and this was more than half your total income – OR – average trading profits 2016/17, 2017/18 and 2018/19 of less than £50K and these are more than half average total income for the year.
What will you get – up to 80% of average total profits for those three years – maximum £2500 per month for 3 months PAID IN ONE INSTALMENT (probably in June).
YOU DO NOT NEED TO DO ANYTHING – YOU WILL BE CONTACTED BY HMRC AND INVITED TO APPLY ONLINE
It is taxable income
You can continue to work
You must include the grant in tax credits etc
WE HAVE THIS INFORMATION FOR YOU – IF YOU NEED OUR HELP LET US KNOW YOU CAN APPROACH A BANK ON THE BASIS OF WHAT YOU ARE EXPECTING TO GET TO OBTAIN SHORT TERM SUPPORT.
What I do not know – how it is affected if you have a large capital allowances claim in one of those years.
If you do not think you will be eligible you should claim Universal Credit.
Disclaimer: this is our interpretation based on the information available and may be subject to revision so please check before acting upon it March 2020.