In line with the extension of the furloughing scheme, the self employed scheme is extended to cover an additional 3 months
A second self-employed grant scheme will open in August with a one-off payment to cover 70% of 3 months of the average business profits.
In summary Self-Employment Income Support Scheme
- A first taxable grant of 80% of average monthly taxable profits over the three years to 5 April 2019, for the first three months to 31 May 2020.
- A second taxable grant of 70% of average monthly taxable profits over the three years to 5 April 2019, for the second three months to 31 August 2020.
- Capped at a total of £7,500 for the first three months, dropping to £6,570.
- Payable as a lump sum from 25 May 2020 for the first period and in August 2020 for the second period, and administered by HMRC.
- Claims for the first grant must be made on or before 13 July 2020.
- Two separate claim periods: no requirement for a claim for the first period to be eligible to claim for the second and final period.
The same eligibility conditions apply to both rounds of grant funding.
- Have submitted your Self Assessment tax return for the tax year 2018-19 on or by 23 April 2020.
- Have traded in the tax year 2019-20.
- Are trading when you apply or would be except for COVID-19.
- Intend to continue to trade in the tax year 2020-21.
- Have lost trading/partnership trading profits due to COVID-19. You should keep records to support this.
- Average self-employed trading profits between £0 – £50,000.
- Have more than half of your total income from self-employment profits.
- You can check online with HMRC to find out if you’re eligible to make a claim. You’ll need your Self Assessment Unique Taxpayer Reference (UTR) number and your National Insurance number.
How to claim?
- You must make the claim yourself. Your tax agent or adviser must not claim on your behalf as this will trigger a fraud alert, and you will have to contact HMRC. This will cause a significant delay in you receiving your payment.
- You can claim online using your Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim.