Self-Employed Income Support Scheme COVID-19
Millions of self-employed individuals will receive direct cash grants though a groundbreaking UK-wide scheme to help them during the coronavirus outbreak, the Chancellor
announced on 26th March 2020.
Those eligible receiving a cash grant worth 80% of their average monthly trading profit
over the last three years. This covers 95% of people who receive the majority of their
income from self-employment.
Cleaners, plumbers, electricians, musicians, hairdressers and many other self-employed
people who are eligible for the new scheme will be able to apply directly to HMRC for the
taxable grant, using a simple online form, with the cash being paid directly into people’s
Anyone who missed the Jan filling deadline has an extra 4 weeks from today to submit
their tax returns
Who are eligible for Self-Employed Income Support Scheme?
- The scheme will be open to those with a trading profit of less than £50,000 in 2018-
19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and
- To qualify, more than half of their income in these periods must come from selfemployment.
- Must be currently self-employed and have a tax return for 2018-2019.
- 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
- This scheme also applies to members of partnerships
- Can claim and continue business
How much you’ll get?
You’ll get a taxable grant which will be 80% of the average profits from the tax years
- 2016 to 2017
- 2017 to 2018
- 2018 to 2019
When will this scheme starts?
- It will be back dated from March
- Grants will be paid in a single lump sum instalment covering all 3 months
- Will start to be paid at the beginning of June.
- This will be available for three months. Will be extended if necessary
How to apply for this scheme?
- Individuals should not contact HMRC now.
- HMRC will use existing information to check potential eligibility and invite
applications once the scheme is operational
- HMRC will contact you directly and you’ll have to fill out a form
- It will be paid into your bank account
Who are not covered by this scheme?
• Those who pay themselves a salary and dividends through their own company are
not covered by the scheme
How HMRC will determine the amount of grant?
• HMRC will add together the total trading profit for the 3 tax years, i.e. 2016-17,
2017-18 and 2018-19 (where applicable) then divide by 3 (where applicable), and
use this to calculate a monthly amount.
What other supports are available?
• Before grant payments are made, the self-employed will still be able to access
universal credit and business continuity loans where they have a business bank