Heard about the latest self-employed grant? Want to know how to apply? Then read on:
The chancellor recently announced another self-employed grant to support sole traders through the COVID lockdown period.
Importantly, we want to help you understand how to apply for the self employed grant.
So, what is the grant?
The grant is available to self-employed people affected by the Coronavirus pandemic.
This grant does not apply to Limited Companies
The amount payable varies, but this one pays 3 months of 80% of your ‘average monthly trading profits’ in one lump sum. This is capped at £7500.
Am I eligible for the grant?
There have been two grants prior to this one, which are both now closed.
To get them, you had to have met very strict criteria, with the amount paid being based on your 18/19 tax return and previous years’ trading.. You can read about this on our previous blog HERE.
What this meant is that for many recently self-employed people, they did not qualify (and still don’t).
The main change to the criteria this time is the wording around the impact on your business due to Coronavirus. To be eligible for the grant you need to confirm that you have a ‘new or continuing impact from 1st Nov’ – worded differently from before.
Luckily, you do not really have to navigate the criteria. HM Revenue & Customs automatically know if you qualify, which makes the application process a lot more straightforward!
All you need to do is enter your tax reference here:
When do I need to apply by?
Grant applications must be complete before 29th Jan 2021.
Are there any traps I should know about?
Aside from the presumption that HM Revenue & Customs will look at claims and seek to reclaim anything that should not have been claimed for, it’s worth noting that the grants are subject to income tax and national insurance.
How do I apply for the self-employed grant?
You can apply directly HERE.