The new Self-Employed Income Support Scheme is designed to support the self-employed who have been adversely affected by the Coronavirus, whereby the government will pay a taxable grant worth 80% of their average monthly profits over the last 3 years, up to a maximum of £2,500 a month.
The details:
- The Self-Employed Income Support Scheme is open to any self-employed with income up to £50,000 who have lost trading/partnership trading profits due to COVID-19.
- It will be available to people who genuinely earn more than half of their income through self-employment.
- It will be available to those who are already in self-employment and who have submitted their Self Assessment tax return for the tax year 2018-19. The government has allowed anyone who missed the filing deadline in January, 4 weeks to submit their tax return i.e. before 23 April 2020.
- You must be trading when you apply and intend to continue to trade in the tax year 2020-2021.
- HMRC is working on the scheme and they expect people to be able to access the scheme no later than the beginning of June.
- If you are eligible, HMRC will contact you directly and ask you to fill out a simple online form.
- HMRC will pay the grant directly into your bank account, in one instalment.
- The Self-Employed Income Support Scheme will be open for 3 months. The government may extend this if necessary.
What about now?
For anyone who is struggling right now, the government points to the following measures:
- Self-employed people can access the Business Interruption Loans (more detail on this on page 3).
- Self-assessment income tax payments, that were due in July, can be deferred to the end of January 2021.
- Self-employed people who have no income will be able to claim Employment and Support Allowance (ESA) and/or Universal Credit (dependant on eligibility).