Yesterday evening it was announced by the Chancellor that new support was to be available for the self-employed. This support, in the form of a new Self-employment Income Support Scheme, will support those affected by COVID-19.
The scheme will allow self-employed people to claim a taxable grant of up to 80% of their trading profits up to the value of £2,500 per month for 3 months.
The scheme is only accessed through GOV.UK. There has been a rise in scams recently. If anyone contacts you to click a link or give personal details or bank details in order to receive a grant, it is a scam.
Who can apply?
Any self employed individual or member of a partnership can apply if:
- they have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
- they traded in the tax year 2019-20
- they are trading when you apply, or would be except for COVID-19
- they intend to continue to trade in the tax year 2020-21
- they have lost trading/partnership trading profits due to COVID-19
- trading profits are less than £50,000 and more than half their income must come from self-employment.
At the moment, this scheme does not cover the self employed who started to trade after 5th April 19.
How much is the grant for?
The size of the grant is determined by 80% of the average profits from the last three tax years. The average monthly profit figure is then calculated and granted (up to £2,500 per month for 3 months).
How to apply
While this scheme is not open for applications at this time, HMRC will be in contact with those that are eligible to invite them to apply online. They are encouraging people to avoid contacting HMRC as this will slow the process.
Other support available
The government is also providing the following additional help for the self-employed:
- deferral of Self Assessment income tax payments due in July 2020 and VAT payments due from 20 March 2020 until 30 June 2020
- grants for businesses that pay little or no business rates
- increased amounts of Universal Credit
- Business Interruption Loan Scheme
As always, please do not hesitate to contact us if you have any questions.