COVID-19: Self-Employment Income Support Scheme June Update

In March, the government announced a support scheme for the self-employed. The scheme was initially to run for 3 months until the end of May but has now been extended for a further 3 months, although at a reduced rate.

1st Grant: Claims until 31 May 2020

Applications for this period are now open and a claim can be submitted. Anyone, who HMRC considers to be eligible should have been contacted.

This scheme will not apply to company directors who may be able to claim for their PAYE salaries under the Job Retention Scheme.

Conditions

  • You must be a sole trader or partner in a business
  • Your business has been adversely affected by COVID-19
  • Have traded during the years ended 5 April 2019, the current tax year and intend to trade for the year to 5 April 2021
  • Majority of your income must be from self-employment
  • Have annual trading profits of less than £50,000 in the year to 5 April 2019 (can use an average over three years to 5 April 2019, if lower)
  • You must have already filed your 2018/2019 tax return or file your return before 23rd April

How much can you get?

The grant will be calculated based on 80% of the average monthly profit for the three years to 5 April 2019 but will be capped at £2,500 per month. The average will be based on a shorter period if self-employment commenced after 6 April 2016.

For full details, visit the Government website here.

How to apply

You can check that your eligibility by using the online checking tool. To check now, please click here. Please note, to check your eligibility, you will need your tax reference (UTR) and national insurance number to hand. 

HMRC are encouraging you to apply via the Government Gateway. Whilst, HMRC will offer an alternative application method, this is likely to delay the payment. If you don’t have a gateway account, then you can create one by following the link from the online checking tool.

When making a claim, please note you will need to do this yourself. HMRC have advised that Agents cannot do so on your behalf. We will, of course, assist you if you need any information.

Claim deadline

Claims for this first period must be made by Monday 13th July. If you have been contacted by HMRC or believe you may be eligible then you must submit you claim by this date.

2nd Grant: Claims until 31 August 2020

HMRC have announced that the criteria will be the same as the first grant. You will not need to have claimed the first grant to claim the second.

One significant difference is that the grant will be calculated at a reduced rate and will be based on 70% of the average monthly profit for the three years to 5 April 2019 but will be capped at £2,190 per month.

It is anticipated that claims can be made in August, although the exact date is not yet known. It is likely that the claim process will be the same. When we have more information to share, we will do so.

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