The COVID-19 outbreak has caused footfall in London to evaporate. This has meant that all taxi drivers in London are now facing financial distress. Thankfully, on March 26th 2020 HMRC announced that they would be providing financial support to the Self-Employed to support them through the pandemic.
It is called the Coronavirus (COVID-19) Self-employment Income Support Scheme.
This blog post answers some of the key questions being asked.
You can apply for the scheme if you meet the following conditions:
You will get a taxable grant which will be 80% of the average profits from the previous three tax years. If you have traded for less than three years then they will take the average of the years that you have traded instead.
You will get a maximum of £2,500 per month for 3 months.
Grants will start being paid in June, covering the months of March - May. The scheme may be extended further.
The grant will be paid directly into your bank account, in one installment.
You cannot apply for this scheme yet - We will update this when you can.
HMRC will contact those who are eligible directly but has not said when this will be yet. It is expected that this will be in June-2020.
No. The criteria for applying does not state that you cannot be working during this time period. Therefore if you need to work (and are lucky enough to get a job) then you can and you should still be entitled to claim the grant in June.
We have already seen a large number of scam attempts on our clients and on our family.HMRC will only allow you to access this scheme through gov.uk - If someone texts, calls or emails claiming to be HMRC, hang-up the phone, do not click any links and do not provide any of your card or bank details.
If you are Self Employed you may be able to claim taxable grants up to 80% of your normal monthly profit, capped at £2,500 per month.
Each year every Taxi Driver needs to calculate their taxes and submit a Tax Return to HMRC by 31st January.