We are conscious that there have been various announcements from the Government regarding financial help during the Coronavirus pandemic. However, here’s a summary of what help is available to freelancers and the self-employed.
- The measures announced allow for a grant of taxable income to those whose profits are affected by Coronavirus.
- It is only open to those with average self-employed profits of £50k or under averaged over the last three tax returns.
- If you’ve not filed an 18/19 personal tax return you have four weeks to do so to qualify.
- Also, personal tax payments on account in July 2020 are now not due until January 2021.
Limited company / Personal Service Company (PSC) contractors
- Contractors working through their own PSC are not covered by the self-employed package.
- The guidance says a PSC director may be able to claim for a portion of their PAYE income only, through the Coronavirus Job Retention Scheme (CJRS)
- Many PSC directors only take a small salary so the value of this scheme will be small.
- PSC contractors will still be able to use ‘time to pay’ for corporation tax, delayed payment of VAT, and delayed payment of personal taxes to ease cashflow.
- There is an expectation that umbrella workers, subject to certain conditions, may be able to receive a salary via the Coronavirus Job Retention Scheme.
- However, there is still significant uncertainty around how this will work and industry bodies such as the FCSA are currently working with Government on these issues.
- We will provide further updates when we can.
This legislation is part of a constantly changing landscape so please check back regularly for updates.