Self-Employed Income Support Scheme COVID-19

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 bank account.

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 2018-19.
  • 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 (where applicable):

  • 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 account

bsassociate logo

Give us a call




© 2021. Brayan & Spencer Associates

think logo