Self-Employment Income Support

The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. This is a temporary scheme, but it may be extended. If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist.

The grant will be subject to Income Tax and self-employed National Insurance. There is other support available if you’re not eligible for the grant including Universal Credit.

Full details of the scheme and eligibility can be found here.

From Monday 4 May, HM Revenue and Customs (HMRC) began contacting customers who may be eligible for the government’s Self-Employment Income Support Scheme (SEISS). Read more and make sure you have the information you need, here. 

HMRC will work out if you’re eligible and how much grant you may get. You can check if you’re eligible to claim yourself using an online tool. Information on how much you might get is available here. The online service will be available from 13th May and if your claim is approved, your payment will be made within 6 working days. See full details here.

An update on 29/05/2020 advised that the scheme will be extended for those whose trade continues to be, or is newly adversely affected by COVID-19. Eligible self-employed people will be able to claim a second and final grant in August, worth 70% of average monthly trading profits for three months and capped at £6,750 total.

Eligibility criteria will remain the same as for the first grant, but note that claiming the second grant is not reliant on having claimed the first, so those who have had their business affected by COVID-19 more recently will be able to apply.

Those who are eligible for the first Self Employed Income Support Scheme grant but have not yet made a claim will need to do so by 13 July.
We understand that additional information will be made available on 12 June, to enable those eligible to start preparing to make a claim. As soon as we have this information available we will list it here.

Information on how HMRC works out total income and trading profits for the Self-employment Income Support Scheme is available to read here.

Who can claim

You can claim if you’re a self-employed individual or a member of a partnership and:

  • you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
  • you traded in the tax year 2019 to 2020
  • you intend to continue to trade in the tax year 2020 to 2021
  • you carry on a trade which has been adversely affected by coronavirus

Your business could be adversely affected by coronavirus if, for example:

  • you’re unable to work because you:
    • are shielding
    • are self-isolating
    • are on sick leave because of coronavirus
    • have caring responsibilities because of coronavirus
  • you’ve had to scale down or temporarily stop trading because:
    • your supply chain has been interrupted
    • you have fewer or no customers or clients
    • your staff are unable to come in to work

Those lucky enough to be under 30 and running their own business/self employed could benefit from the The Prince’s Trust and Natwest Enterprise Relief Fund.

 

Covid-19 Newly Self Employed Hardship Fund

 

An update to the scheme was announced on 15/04/2020 which includes support for those more recently self employed under the Covid-19 Newly Self Employed Hardship Fund. Read the article here.

The Covid – 19 Newly Self Employed Hardship Fund is now open for applications via the Highland Council. Use this link to read more apply.

Eligibility for the Newly Employed Hardship Fund is defined by the Scottish Government. To be eligible you must meet all of the following criteria:

  • You must have become self-employed on or after 6 April 2019 (did not submit a tax return including income from self-employment for 2018-19)
  • Over 50% of your income is from self-employment
  • You must be trading below £50,000 in the 2019-2020 financial year
  • You must be able to provide evidence of trading up to March 2020 and intend to continue trading in the tax year 2020-21
  • You must have lost business due to coronavirus and experience personal financial hardship as a result
  • You must be ineligible for other COVID-19 related business support (including the Business Interruption Loan Schemes, Corporate Finance Fund, Job Retention Schemes, Future Fund, R&D Focussed SMEs Fund, HMRC Self-Employment Income Support Scheme, Non-Domestic Rates relief, Small Business Grant or other business support)
  • You are not yet in receipt of state benefits payments (Universal Credit, Statutory Sick Pay, Employment and Support Allowance, Job Seekers’ Allowance, Income Support) or have applied for but not yet started receiving Universal Credit at the time of applying
  • You must be trading as self-employed, not as a limited company or partnership
  • You must have taken steps to limit costs and expenditure (including through schemes such as VAT deferral and seeking a mortgage payment holiday)
  • You do not have access to sufficient savings or other sources of income to meet basic needs

Page updated: 01/06/2020

Contact us direct if you have any questions or concerns and we will do our very best to help.

 

We’ve extended all existing memberships by three months and are welcoming new members with an option to defer payment for three months. Contact us to learn more.