Covid-19 Self-Employed Income Support Scheme

03/04/2020

Covid-19 Self-Employed Income Support Scheme

Grant for the self-employed or individuals in a Partnership who have lost income due to Coronavirus

The grant will be for 80% of average trading profits up to maximum of £2,500, available for at least the next 3 months.

 

Who is Eligible

To be eligible for the grant:

  • You need to have submitted an Income Tax Self-Assessment tax return for the year 2018-19
  • You need to have traded in the tax year 2019-20
  • Be trading when you apply, or would be except for COVID-19
  • Intention to continue trading in 2020-21
  • Have lost trading/partnership income due to COVID-19
  • Your self-employed trading profits must be less than £50,000 and more than half your income from self-employment. This is determined by at least one of the following conditions being true:
    • having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income;
    • having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of you average taxable income in the same period

HMRC will accept late Self-Assessment tax returns for the year 2018-19 to be filed by 23rd April 2020 (extended yesterday from previous deadline of 31/01/2020).

HMRC will use the tax return information from 2018-19 to determine those eligible for the grant.

Amount of the Grant

You will receive a taxable grant of 80% of the average profits from the last 3 years tax returns (where applicable):     Tax years:     2016/17 – 2017/18 – 2018/19

HMRC will work out the amount of the grant by adding the trading profits for the 3 years (where applicable) together then dividing by 3 (where applicable), this will be used to assess your monthly amount.

The maximum will be £2,500 per month for 3 months.

The grant will be paid automatically by HMRC into your bank account.

HMRC are urgently working on the logistics of the scheme, they anticipate that payments will start to be paid at the beginning of June 2020.

How to Apply

You can not apply for this grant yet.

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

Government guidance can be found here: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

Prydis

This article was written by Prydis

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