HMRC are now issuing the Self Employed Income Support Scheme Grants to eligible self-employed individuals, as part of their efforts to support small business during this time.
This is not applicable to Limited Company directors, however.
If you are eligible, you can claim a grant of 80% of your average monthly trading profits, capped at £2500 per month.
Am I eligible for the Self Employed Income Support Scheme Grant?
To be eligible for the Self Employed Income Support Scheme Grant you will have:
- Been adversely affected by Coronavirus
- More than half of your income from self-employment (based on your tax returns over the last 3 years).
- Filed a 2018/19 tax return, have traded in this tax year and be looking to continue next year.
If you haven’t filed your 2018/19 return, you should do so now to avoid further fines.
Unfortunately, if it wasn’t in before 24th April, you are not eligible for the grant.
This help won’t work for you if you didn’t do a tax return for 18/19, for example you became self-employed after 6th April 19.
This is not claimable if you have average trading profits from self-employment over £50,000.
HMRC will average your earnings over 3 years, but if you have less tax returns than this submitted, they will average over the ones they do have.
How do I get the grant?
HMRC will write to you to tell you how to apply online.
You don’t need to take any action to be eligible (apart from getting any overdue tax return in).
Get started with HMRC’s new tool to tell you if you are eligible, as soon as possible. Click here to access it.
Once you complete the form, you will receive a time and date for when you are able to apply.
If successful, the grant will be paid directly into your bank account in one lump sum, covering 3 months, from March to May.
Expect to create a unique government gateway ID during the process.
You may also need to prove your identity during this process. Once you have this, you can follow the instructions through a very simple form to claim.
Currently accountants cannot apply for this for you – HMRC did not have the time to build the system for us to do this on your behalf.
Originally planned to go live in June, the scheme has been brought forward. Expect to receive your funds around 6 working days from application.
Want to read more?
The full HMRC Guidance can be found HERE.
HMRC have published a Frequently Asked Questions (FAQ) on different circumstances is HERE.
Prefer to watch a video?
Dan breaks it down for you.