Self-Employment Income Support Scheme
If you are self-employed or a partner and have been adversely affected by coronavirus (COVID-19) find out whether you can use this scheme to claim a grant.
Currently, the scheme allows you to claim a taxable grant worth 80 per cent of your average monthly trading profits, paid out in one instalment covering 3 months of profits, and capped at a total of £ 7,500.
If you are eligible and your business has been adversely affected you must lodge your first grant claim on or before July 13, 2020.
This scheme is widening. If you are eligible for the second and final grant and have been negatively impacted by your company on or after July 14, 2020, you will be entitled to file a claim in August 2020. You should demand a second grant even though you didn’t make a claim for the first grant.
How the grant work?
You can continue to work if you receive the grant, start a new trade or take on other employment, including volunteer work, or duties as a reservist of the armed forces.
The grant need not be repaid but will be subject to Income Tax and National Insurance for self-employed persons.
If you are eligible, HMRC will work out what amount of grant you can get. But you can take these steps to help you understand how we are going to do that and what you can do now.
Who can claim?
If you are a self-employed individual or a member of a partnership, you can claim and all of the following shall apply:
- You traded in fiscal year 2018 to 2019 and submitted your self-assessment tax return for that year on or before 23 April 2020
- You exchanged in the 2019 to 2020 tax year
- You expect to start trading in the 2020 to 2021 tax year
- You are carrying out a trade that was adversely affected by coronavirus
Coronavirus could adversely affect your business, if e.g.:
- You can’t work, because you’re:
- Are defensive
- Are self protected
- Is on medical leave due to coronavirus
- Have caring duties due to coronavirus
- You needed to slow back or quit dealing immediately, because:
- It has interrupted your supply chain
- With less or no clients or consumers
- your staff are unable to come in to work
If you are a limited company or operate a trade through a trust, you shouldn’t claim the grant.
We’ll first look at your self-assessment tax return for 2018 to 2019 to work out your eligibility. Your profit from trading must be no more than £50,000 and at least equal to your non-trading revenue.
If you’re not eligible depending on the 2018 to 2019 self-assessment tax return, otherwise we’ll look at the 2016 to 2017, 2017 to 2018 and 2018 to 2019 tax years.
You have to make the point yourself. Your tax agent or advisor must not lodge a claim on your behalf as this will trigger an alert for fraud and you will need to contact HMRC. That will cause you to receive your payment significantly delayed.