What help is there for Sole Traders!

Lockdown has most likely left you anxious about your future and desperate to find away to financially survive until June. Regardless of your political persuasion the government are doing there very best to help you get through. Click here to look at our blog issued after Rishi’s announcement.

The big (in fact huge) difference between the self employed and employees that have been furloughed is that you can still work! Yes you heard right, you can claim the 80% grant and still work. Obviously we know this won’t be possible in all industries, but, if it is possible, this is great news for many sole traders. Especially in the construction industry.

The drawbacks of the grant, are that it is based on your last three years profits filed with HMRC. However the government will take one or two year if that is all you have. This means you will need to of had at least a 18/19 tax return filed with HMRC to be able to apply for this grant. Pressure is being put on the Government to allow the newly Self Employed to be eligible for the grant. Things are changing by the hour, if the government change their minds, the self employed would need a 19/20 tax return completed as soon as possible to be able to apply for the grant. Click here to read an article from the Times

The other downside is that this grant will not be paid to you until June.

Wondering what you can do between now and June? Here are our top tips:

  • Work out exactly what you need to live on for April & May
  • Where possible, defer your mortgage by speaking to your mortgage company. 10 of the biggest lenders now let you apply online. Make sure you apply and don’t just stop your direct debit. Take a look at Martin Lewis’ help with how to apply.
  • Work out what grant you will be entitled to. If you would like us to work this out for you, or to send you our grant calculator. Please email jade@1accounts.co.uk
  • Work out what you need to borrow. If family and friends can help you, use them. Your grant will help to pay them back.
  • The Business Interruption scheme, should be able to help you. To access this, speak to your local bank.
  • Apply for universal credit. This is not a failure, use the help that is available!
  • Get your accounts up to date so you can see exactly how your business will be impacted.

What about my CIS refund? 

For CIS Sole Traders and Partnerships, getting your accounts up to date is extremely important right now as you are most likely due a Tax Refund. If you spend the next week getting your records up to date, your accountant should be able to file the Tax Return and Accounts as soon as possible to get you your refund.

For our CIS clients we will provide you with some additional software as part of our service. You can then take pictures of your receipts, sales invoices and CIS certificates and we will process your return as soon as we have all the information. We will also help you to apply for the grant in June. All of our frontline team are working to support you and are more than happy to help you get your refund.

If you are reading this and need help because your accountants can’t work remotely or haven’t been in touch, please email jade@1accounts.co.uk and she will fill you in on our offer to new clients.

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