What is available?
A second grant has been made available for eligible self-employment individuals after applications for the first self-employment grant closed in July 2020.
Under this second grant scheme, self-employed individuals may be able to claim a cash grant of 70% of their average monthly profits over three tax years. This will be payable in a single sum, up to a total of £6,570.
The grant will be subject to tax and national insurance.
You can continue to work or take on other employment whilst claiming the grant.
Who can claim?
To make a claim you must be self-employed and your business must have been adversely affected on or after 14 July 2020.
In addition, you must:
- Have submitted a self-assessment Tax Return for 2018/19 before 23 April 2020
- Have traded in the 2019/20 tax year
- Be intending to trade in the 2020/21 tax year
- Have trading profits of less than £50,000 and more than half your total income for 2018/19 OR on average for the three tax years 2016/17, 2017/18 and 2018/19.
You will have to confirm to HMRC that your trade has been adversely affected by the coronavirus.
What does adversely affected mean?
Your business can be adversely affected if you are unable to work because you are:
- Shielding
- Self-isolating
- On sick leave due to coronavirus
You could also have caring responsibilities due to coronavirus.
Alternatively, you may have incurred extra costs, had to scale down or even stop trading because:
- You have fewer or no customers
- Your staff cannot come to work
- A contract has been cancelled due to coronavirus
- You have had to buy protective equipment
How can I claim?
Claims can only be made using an online service provided by HMRC. The link can be found here: https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme.
The claim has to be made on or before 19 October 2020.
How much can I claim?
HMRC have published details as to how the ‘average profits’ will be calculated. This is covered in a separate blog – Coronavirus: calculating the second self-employment grant.
Will there be a third grant?
The government have announced that there will be a third self-employment grant scheme which lasts for six months from 1 November 2020.
Eligibility criteria will be similar to the first and second grants. Two payments can be claimed, one for each three-month period, although the amounts are expected to be much lower.
Further details are expected to be published in due course.
Any questions?
Please contact me if you have any questions or would like any help quantifying or making your claim.
