Covid19 Self-Employed Support: Top Actions for The Self-Employed

If you are self-employed and the Covid-19 pandemic has hit your income and/or contracts, here are 5 things you can do to access support and mitigate the impact:

1. Apply to the Self-employment Income Support Scheme (SEISS)

The scheme will support self-employed individuals (including members of partnerships) whose income has been negatively impacted by COVID-19. The scheme will provide a grant to self-employed individuals, worth 80% of their profits up to a cap of £2,500 per month for the next 3 months.

The eligibility checker is now live – click here for more details.

2. Defer payments due to HMRC.

You can apply for time-to-pay on any outstanding or forthcoming tax liabilities.

VAT payments due for the period to 30th June have been delayed until the end of the tax year 2020-2021 but returns must still be filed.

Call HMRC on 0800 0159 559 to discuss time-to-pay.

3. Self-assessment payment on account deferral

Self Assessment payments on account that are/were due on 31st July will be deferred until 31 January 2021. No application is required by any individual wishing to take advantage. HMRC is simply not chasing any payments for which the above applies. Please be aware that you will still be required to pay the full year’s tax.

4. Take a rent or mortgage holiday

All major mortgage lenders will provide you with a 3-Month repayment holiday. However, you should remember that this is not a reduction in your mortgage and so your mortgage term will be increased accordingly. Interest will continue to accrue during the holiday period too.

Private landlords are also eligible for a 3 month buy-to-let mortgage holiday so if you are in rented accommodation, speak to your landlord so you can take a short break and they are not out of pocket.

5. Speak to other lenders about reducing or pausing repayments

Most major banks, finance houses and lenders are sympathetic to the current situation and will be open to discussing how to assist you.

Loans – speak to the lender about capital (& Interest) repayment holiday.

Credit cards and store credit accounts – reduce repayments to the minimum payment period for a few months, but be aware that interest will continue to accrue on outstanding amounts.

Utilities and Councils – Councils, water, energy and domestic utilities companies are offering to defer payments for those in financial difficulty.

If you have questions or need help, please contact a member of our team for more information or to see how Evans Weir can help you through this current period of uncertainty and beyond.