Apply for COVID-19 Self-Employment Income Support Scheme, if you’re self-employed or a member of a partnership and have lost income due to coronavirus.
Who can apply?
You can apply if you’re a self-employed individual or a member of a partnership and:
- have submitted your Income Tax Self-Assessment tax return for the tax year 2018-19
- traded in the tax year 2019-20
- are trading when you apply, or would be except for COVID-19
- intend to continue to trade in the tax year 2020-21
- have lost trading/partnership trading profits due to COVID-19
Your self-employed trading profits must have been less than £50,000 and more than half of your income from self-employment. This is determined by at least one of the following conditions being true:
- having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
- having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period
If you started trading between 6th April
2016 and 5th April 2019, HMRC will only use those years for
which you filed a Self-Assessment tax return to make the calculation.
To clarify, if you started self-employment after
5th April 2019 you are not eligible for this scheme.
How the grant will be calculated:
The grant will be based on 80% of the average
profits from the tax years (where applicable):
- 2016 to 2017
- 2017 to 2018
- 2018 to 2019
To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount.
It will be up to a maximum of £2,500 per month for 3 months.
HMRC will pay the grant directly into your bank account, in one instalment.
How to apply:
HMRC will contact you directly if you are eligible for the scheme and invite you to apply online.
HMRC says Individuals do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.
If you are late submitting your 2019 Self-Assessment tax return (due date for submission was 31st January 2020) you can still submit it by 23rd April 2020, for the figures to be included in the grant calculation.
Categories: Business Support, Coronavirus Scheme