In the Chancellor's Winter Economy Plan, two new measures were announced to support the self-employed and those who are required to complete self-assessment tax returns.

Extension to the Self-Employed Income Support Scheme (SEISS)

Positively, the Chancellor announced the extension of the Self-Employed Income Support Scheme. 

More details will follow, but in brief - those currently eligible for the scheme and who are still actively trading, but continue to face reduced demand due to coronavirus, will receive an initial lump sum to cover three months’ worth of profits from November 2020 to the end of January 2021.  This will be worth 20% of average monthly profits, to a total of £1,875.

An additional second grant, which may be adjusted to respond to changing circumstances, will be available for self-employed individuals to cover the period from February 2021 to the end of April 2021. 

Extension to deadline to pay self-assessment tax bill

Self-assessment tax payers can extend their outstanding tax bill over 12 months from January 2021.  The tax bill will still require to be paid, but if your tax debt is up to £30,000 then you can put in place a payment plan for the 12 months to January 2022. 

This will help people currently experiencing financial problems, although it must be noted that the tax will ultimately require to be paid. 

For more information or advice, please get in touch with me at Alex.Docherty@jcca.co.uk or your usual Johnston Carmichael contact.