Self-Employment Income Support Scheme

Support provided by HMRC

What does this involve?

HRMC are allowing individuals who are self-employed or members of a partnership to claim a taxable grant equivalent to 80% of their average monthly trading profits, up to a maximum of £7,500.

The grant will be paid out in a single instalment covering a three-month period.

If you’re eligible and want to claim the first grant you must make your claim on or before 13 July 2020.

This scheme is being extended and you’ll be able to make a claim for a second and final grant in August 2020.

The online service for the second and final grant is not available yet. HMRC will update this guidance to let you know when you can make your claim.

If you’re eligible the second and final grant will be a taxable grant worth 70% of your average monthly trading profits. The grant will be paid out in a single instalment covering a further 3 months’ worth of profits. The second grant is capped at £6,570 in total.

Am I eligible?

To be eligble, you must be self-employed or a member of a partnership.

You must also meet these criteria:

  • you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return for that year on or before 23 April 2020
  • you traded in the tax year 2019 to 2020
  • you intend to continue to trade in the tax year 2020 to 2021
  • your trade has been adversely affected by coronavirus

Your business could be adversely affected by coronavirus if, for example:

a) you’re unable to work because you:

  • are shielding
  • are self-isolating
  • are on sick leave because of coronavirus
  • have caring responsibilities because of coronavirus

b) you’ve had to scale down or temporarily stop trading because:

  • your supply chain has been interrupted
  • you have fewer or no customers or clients
  • your staff are unable to come in to work

Your trading profits must be no more than £50,000 and at least equal to your non-trading income (that is, any income from sources other than your trade).

If you’re not eligible based on your 2018 to 2019 Self Assessment tax return, HMRC will look at the 2016 to 2017, 2017 to 2018, and 2018 to 2019 tax years.

What does this cost?

This is a free service.

Who is this for?

Self-employed individuals or members of a partnership are eligible.

How long does this take?

Once you’ve submitted your claim, you will be told straight away if your grant has been approved.

The grant will be paid directly into your bank account within six working days.

Important information

To work out your eligibility, HMRC will look at your 2018 to 2019 Self Assessment tax return first.

If you’re not eligible based on your 2018 to 2019 Self Assessment tax return, HMRC will look at the 2016 to 2017, 2017 to 2018, and 2018 to 2019 tax years.

In this case, the amount of your grant will be based on your average trading profit over these three tax years. HMRC will calculate your average trading profit by adding together your total trading profits or losses for each of the three tax years, then dividing by three.

If you receive a grant you can continue to work, start a new trade or take on other employment, including voluntary work or duties as an armed forces reservist.

The grant is subject to Income Tax and self-employed National Insurance.

Your tax agent or adviser cannot make the claim for you. You must make the claim yourself. If you use an agent you should contact them if you need any help or support.

If you’re eligible, HMRC will let you know the date you’ll be able to make a claim from and ask you to add your contact details. You'll then get a reminder when the online service becomes available.

Next steps

Visit the UK Government website for more information.

Support provided by HMRC

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