SELF-EMPLOYMENT INCOME SUPPORT SCHEME

COVID-19 SUPPORT INVESTSK

Recognising that many self-employed “people” may be heavily affected by the Coronavirus outbreak, but may not be able to access support from the Government’s other business grant funds or its Job Retention Scheme, the Government has initiated a support scheme to cover some of the impact from lost income for the self-employed.

 

It should be noted that if you are eligible for the Coronavirus Self-Employment Income Support Scheme, HMRC will be contacting you to invite you to apply for funding. Clearly, there are a large number of people who may be eligible, and the Government websites encourage self-employed workers to bear with them while they process this scheme, rather than contacting them directly.

 

In the meantime, as well as sharing the link to the Government’s website, we thought it might be helpful to provide some headline pointers from the scheme – but checking the main website for more detailed information is absolutely vital.

A self-employed individual or member of a partnership is likely to be eligible for the funding provided they:

  • Have submitted their Income Tax Self-Assessment return for 2018-19 tax year;
  • Traded in the 2019-20 tax year, are trading at the time of application (or would be were it not for Covid-19), and intend to trade in the 2020-21 tax year;
  • Have lost trading profits due to Covid-19
  • And their self-employment/partnership trading profits are less than £50,000, with more than half of their income coming from self-employment.

A lump sum grant, based on a figure of up to £2,500 per month to cover up to a 3-month period, could be available. This will be calculated on the basis of 80% of average profits over a 3-year period (where applicable), or lesser, to derive the monthly figure.

 

It is absolutely vital that you access the information directly on the Government website for more detailed information about the scheme – but remember, HMRC will be contacting you if you are eligible

 

For detailed information, please click here: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme