Month: May 2020

Covid-19 Update #4

Posted on

Self-Employment Income Support Scheme

HMRC will start contacting self-employed businesses from this week who may be eligible for 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.

Who can claim

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

  • you carry on a trade which has been adversely affected by coronavirus
  • 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

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

  • 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

How to claim

The online service you’ll use to claim is not available yet. HMRC will aim to contact you by mid-May 2020 if you’re eligible, to invite you to claim using the GOV.UK online service. Payment will be made by early June 2020 if your claim is approved.