The new ‘Self employed Income Support Scheme’ has been launched.
Today the Rishi Sunak, Chancellor of the Exchequer, has announced support for the self-employed. This covers 95% of people who receive the majority of their income from self-employment.
How much will I be entitled to?
A cash grant worth 80% of your average monthly trading profit over the last three years will payable around June.
The scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19.
To qualify, more than half of your income in these periods must come from self-employment and you must have filed a tax return for 2018-19.
If you haven’t yet filed this, you have four weeks to do so to qualify for the scheme.
How do I apply?
Self-employed people who are eligible for the new scheme will be able to apply directly to HMRC for the taxable grant, using a simple online form, with the cash being paid directly into people’s bank account. Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational. HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply, you do not need to do anything right now.
Which period will this cover?
The income support scheme will initially cover the three months to May.
Grants will be paid in a single lump-sum installment covering all 3 months and will start to be paid at the beginning of June.
To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply.
I pay myself a salary through my limited company – am I eligible?
If you pay yourself a salary and dividends through your own company, then you are not covered by the Self Employed Income Support Scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if you are operating a PAYE scheme.
Does this scheme apply to partnerships?
Yes, this scheme also applies to members of partnerships.
My profit was in excess of £50,000 per year do I qualify?
I did not make a profit over the past 3 years so do I qualify?
We are awaiting further advice on this. We will update this page once we know.
Can I access any other help?
Before grant payments are made, the self-employed will still be able to access other available government support for those affected by coronavirus including more generous universal credit and business continuity loans where they have a business bank account.
The loan is interest-free. You can also defer tax payments including VAT and the July self-assessment tax payment.
Please read our blog here on the other available help
Does this scheme only apply if I am earning nothing currently?
No, if you are still able to trade then you can do so and still apply for help under this scheme.
We will continue to update you on any further developments.