Farmers are being advised to check if they qualify for a new grant related to the financial impact of coronavirus.
The UK Government’s Self-employment Income Support Scheme, which will open next month, has been launched to provide financial grants, and accountants Campbell Dallas say some farmers will be eligible for help.
Partner Andy Ritchie said the key to claiming the grant is that the business must have lost – or will lose – trading profits due to coronavirus.
The scheme will allow self-employed farmers and contractors to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 a month for the three months to May 2020, but the scheme may be extended by the government.
Mr Ritchie said that HMRC have clarified the basis of calculating trading profits for the purpose of the grant.
“The profits will be based on previous taxable profits, but before the use of farmers averaging and any brought- forward losses. For those farming businesses trading through the tax years 16-17, 17-18 and 18-19 the trading profits will be based on an average of those three tax years,” he said.
For those who have been self-employed for a shorter period, the calculation will be based on an average calculation.
However, Mr Ritchie warned any person with average profits above £50,000 and those who have more than half their taxable income from non-trading income will not qualify for a grant.
He added: “This could include self-employed farmers who also receive the majority of their taxable income through pension or diversified income, such as furnished holiday lets or property rental income.
“HMRC will look to contact taxpayers by mid-May and invite them to make a claim. If successful, the grant will be paid in one instalment direct into the bank of the individual.”
nnicolson@thecourier.co.uk
