Freelance Grant: The Rules Have Changed and You Might be Eligible
The Covid-19 pandemic has made things hard for many freelancers all over the world. The government has announced a support program and provided many freelancers with the opportunity to get a grant on the taxes. You can claim a tax grant for your freelancing if you have been affected negatively by the pandemic.
According to the changed rules, you are eligible to claim the freelance tax grant if you fulfil the following requirements:
If you have a business of your own or you are a self-employed individual.
If you are working in partnership with someone.
If you have filed your 2019/2020 tax return before the 2nd March 2021.
If you have traded for the tax year of 2020 to 2021.
You continue to trade but are unable to make expected profit due to the pandemic.
If your work demand has reduced due to the pandemic.
If you are unable to work or continue trading due to the COVID-19 situation in the country.
If you are committed to continuing working in the future.
If you have anticipated and can claim that your trading will continue to decline due to the pandemic in the future.
If you are an individual freelancer and are not working through any trust or a limited company, then you can benefit from this support system introduced by the government. Claim the tax-free grant and continue working as a freelancer during this pandemic.
When Can You Apply?
The fifth grant covers your loss for the earnings from May this year. You will be granted 80% if you have lost at least 30% of your regular earnings due to the pandemic. You can apply for this grant at the end of July. The fifth grant will cover your losses for May to September. The exact date has not been announced by the government yet.
However, if your lost earnings are less than 30%, you will be provided with a 30% grant of the earnings you have lost. This amount can reach a maximum of £2,850.
How Much Will You Get?
According to the rules set for the fourth grant, you will get an 80% grant on the trading profit of three months. The grant will cap out at £7,500, and you will receive it in a single installment. The amount will be dependent on the average profit that you make with your trading as a freelancer.
The average trading profit will be mainly calculated using the amount of tax returned by you in the last four years. This calculation may cause a variation in the granted amount by making it higher or lower.
Things You Need To Claim the Grant:
You need the record for previously returned taxes and some other important documentation to claim the grant. You need to have the following things:
You will require your ID and Password for the Government gateway.
The National insurance number is required.
You also need your bank statement and bank account details along with your UTR (Unique Taxpayer Reference).