With the outbreak of the Coronavirus pandemic, taxi drivers across the UK are now facing an uncertain financial future.
During these difficult times we want to help and support Patons customers, so we’ve put together everything you need to know about the Coronavirus Self-Employment Income Support scheme:
What do I need to know?
- Taxi drivers, who are self-employed and earn less than £50,000 a year, are able to apply for a government grant.
- Worth up to a maximum of £2,500 a month, grants are calculated on 80% of your average monthly profits over the last three years.
- The amount you will get is based on your tax returns for 2016/17, 2017/18 and 2018/19. If you missed the January deadline, you have until 23rd April 2020 to get it done and still qualify.
- If you became self-employed after April 2018, your 2018/19 tax return will be used instead. If you only have a few months’ self-employment on your 2018/19 return, this will be counted as your total profit for the year.
- The money will be backdated to cover March, April and May and will be paid in one instalment directly into your bank account from HMRC in June.
- All grants are taxable and need to be declared on your January 2022 tax return.
- Self-employed taxi drivers can continue to work while still receiving financial support.
What do I need to do?
- Everyone who is eligible for the Coronavirus Self-Employment Income Support scheme will be contacted directly by HMRC and asked to fill in an online form.
- Once HMRC has received your claim they will contact you again to tell you how much you will get and when you will be paid.
- If you claim tax credits you will need to include the grant in your claim as income.
What other financial help can I get?
- You can apply for a Business Interruption Loan
- You can apply for a Small Business Grant
- You can defer your income tax payments
- You can apply for increased amounts of Universal Credit
Stay home, stay safe and plan ahead with Patons.
If you have any further questions about taxi insurance from Patons, feel free to get in touch with our team, or fill out our new quote form today.
All information is correct at time of publication. Information provided within this article may have changed over time. No responsibility for its accuracy or correctness is assumed by John Patons Insurance Services or any of its employees.