The self employed income support scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 a month. It will be available for 3 months, but may be extended.
It is not repayable as it is a grant not a loan and you can still be working or take on employment whilst you claim.
HMRC will be contacting those eligible by mid May and payments will be made in June. The online service you’ll use to claim is not available yet.
Who can Claim?
You can claim if you’re a self-employed individual or a member of a partnership and you:
- have submitted your Self Assessment tax return for the tax year 2018 to 2019
- traded in the tax year 2019 to 2020
- are trading when you apply, or would be except for coronavirus
- intend to continue to trade in the tax year 2020 to 2021
- have lost trading profits due to coronavirus
You will need to confirm to HMRC that your business has been adversely affected by coronavirus. HMRC will as usual use a risk based approach to compliance.
Your trading profits must also be no more than £50,000 and more than half of your total income for either:
- the tax year 2018 to 2019
- the average of the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019
Other claims to consider would be Universal Credit and ESA to give you money in the meantime. For more information on these visit https://www.gov.uk/guidance/new-style-employment-and-support-allowance-detailed-guide