SELF EMPLOYMENT INCOME SUPPORT SCHEME
Update – 5 May 2020
HMRC has now made available an online ‘eligibility checker’ for taxpayers to find out if they are eligible for the scheme and when they can claim. The claim will be made using the taxpayer’s Government Gateway login. Agents will not be able to make the claim on behalf of their clients so it is essential that self-employed clients have access to the self-assessment service in their own Government Gateway account and have checked that their contact details, including email address and phone number are correct. HMRC may contact by email, text or letter. At Redshield we will be able to check the amount of the claim for you. Further details on this scheme can be found by clicking the link below.
SCAMS – please be aware that there are email and text scams going round regarding this scheme. We recommend going direct to the www.gov.uk website rather than clicking on any link you may receive in an email or text.
The Government will pay a grant of up to £2,500 per month for the next 3 months for self-employed who qualify. The grant is taxable and will be included in your self-employment income.
You can apply if you’re a self-employed individual or a member of a partnership and you:
- 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 also be less than £50,000 and more than half of your income come 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 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return. If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, the deadline has been extended to 23 April 2020.
How much you’ll get
You’ll get a taxable grant which will be 80% of the average profits from the 3 tax years (where applicable) ending 5 April 2019 up to a maximum of £2,500 per month for 3 months.
How to apply
HMRC will contact you if you are eligible for the scheme and invite you to apply online.
Further information can be found at https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme