I hope you’re keeping well and looking after yourself – I think we can all start to see the light at the end of the tunnel now!

Please see below for an update regarding the self-employed grant.

Self Employed Income Support Scheme – How to Apply

The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single installment 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.

HMRC will work out if you’re eligible and how much grant you may get. But you can follow these steps to help you understand how we will do this and what you can do now.

Who can claim 

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

Check if you’re eligible to claim 

You can use HMRC’s online tool to find out if you’re eligible to make a claim.

You’ll need your:

  • Self Assessment Unique Taxpayer Reference (UTR) number – if you do not have this find out how to get your lost UTR number
  • National Insurance number – if you do not have this find out how to get your lost National Insurance number

If you’re eligible 

HMRC will tell you the date you’ll be able to make a claim from and ask you to add your contact details. We will use these to remind you when the online service will be available.

If you’re not eligible 

IF HMRC have told you that you’re not eligible to make a claim, you can ask HMRC to review this after you’ve used the online tool. If you want to do this at a later time, you’ll be able to use the online tool more than once.

How to claim 

The online service will be available from 13 May 2020. If you’re eligible, HMRC will tell you the date you can make your claim from. If your claim is approved you’ll receive your payment within 6 working days.

If you’re unable to claim online an alternative way to claim will be available. HMRC will update this page with more information soon.

You do not need to contact HMRC now, as this will only delay the urgent work being undertaken to introduce the scheme.

When you make your claim 

You’ll only need your:

  • Self Assessment UTR – if you do not have this find out how to get your lost UTR
  • National Insurance number – if you do not have this find out how to get your lost National Insurance number
  • Government Gateway user ID and password – if you do not have a user ID, you can create one when you check your eligibility online – we do not have your personal gateway information, if you have not already set up an account, you will need to do this
  • bank account number and sort code you want us to pay the grant into (only provide bank account details where a Bacs payment can be accepted)

You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.

If you claim the grant HMRC will treat this as confirmation you’re below the state aid limits.

HMRC will check claims and take appropriate action to withhold or recover payments found to be dishonest or inaccurate.

After you’ve claimed 

Once you’ve submitted your claim, you will be told straight away if your grant is approved. We will pay the grant into your bank account within 6 working days.

You must keep a copy of all records in line with normal self-employment record keeping requirements, including:

  • the amount claimed
  • the claim reference number for your records
  • evidence that your business has been adversely affected by coronavirus

You will need to report the grant:

  • on your Self Assessment tax return
  • as self-employed income for any Universal Credit claims
  • as self-employed income and that you’re working 16 hours a week for any tax credits claims

More to follow as and when we know more

– Stay safe

A close up photo of a blue calculator displaying the word 'VAT', whilst sat on some files