The governement has launched a Self Employed Income Support Scheme which is running for 3 months (from March to the end of April).
Who is eligible?
- Self employed people (individuals, partners) who filed a 2018/19 self assessment income tax return,
- People who earn a majority of their income from self employment
- People with self employment income of under £50,000 per annum (so no help at all if you earn more than that)
- You can still be trading, have ceased trading because of the virus outbreak, or be expecting to trade once the outbreak is over.
How much is the grant?
Up to 80% of the average monthly trading profit for the last 3 years, capped at £2,500 per month.
If you don’t have three year’s tax returns, HMRC will use the data what they have to calculate a monthly amount.
We don’t know if self employed people will have to declare what trading income they have made in the periods claimed. We also don’t kow whether there will be any kind of appeals process if HMRC don’t think you are eligible or you disagree with the amount calculated. We think HMRC we be swamped just getting the various schemes up and running.
How do I apply?
- You don’t need to apply
- HMRC will contact you if they think you are eligible for the grant
- HMRC aim to contact you and make payments in June
Government advice on this topic may be found here