Self- Employed Income Support Scheme

Posted 27/03/2020
Written by Robert Parkin
Category COVID-19 HELP

Applicable to self-employed or a member of a partnership who have lost income due to coronavirus
This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.

Who can apply?

You can apply if you’re a self-employed individual or a member of a partnership and you:

  • have submitted your Tax Self-Assessment tax return for the tax year 2018-19 & traded in 2019/20
  • are trading when you apply, or would be except for COVID-19
  • Profits must be less than £50,000
  • Self-employed profits must be more than half of your total income in the last 3 years
  • intend to continue to trade in the tax year 2020-21
  • have lost trading/partnership trading profits due to COVID-19 – BUT YOU CAN CONTINUE TO WORK AND STILL GET THIS GRANT
If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020 – get in touch ASAP if this is the case.

Who CAN NOT Apply?
  • Registered for self-employment after 06/04/2019
  • People trading as a limited company (Job Retention Scheme may Apply)
How much you’ll get – This will be paid at the beginning of June at the earliest

You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable) up to a maximum of £2500 per month for 3 months:

To work out the average HMRC will add together the total trading profit for the 3 tax years; 05/04/17 to 05/04/19 then divide by 3 and use this to calculate a monthly amount.

HMRC pay the grant directly into your bank account, in one instalment.

How to apply

You cannot apply for this scheme yet.

HMRC will contact you if you are eligible for the scheme and invite you to apply online.

Individuals do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.

You will access this scheme only through GOV.UK. If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam.

After application

Once HMRC has received your claim and you are eligible for the grant, HMRC will contact you to tell you how much you will get and the payment details.

If you claim tax credits, you’ll need to include the grant in your claim as income.

Other help

 Self-assessment and VAT Deferrals
  • Grants for businesses that pay little or no rates
  • Increased amounts of Universal Credits
  • Business Loans


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