If you are self-employed and have been affected by COVID-19 read below to find out if you can use this scheme to claim a grant.
The government has introduced the self-employed income support scheme to allow individuals to claim a taxable grant of 80% of your average monthly trading profits. This will be a single instalment and will cover a 3-month period with a cap of £7,500.
The grant will be subject to Income Tax and Self-employed National Insurance. This is a temporary scheme but may be extended by the Chancellor.
If you receive the grant you can continue to work or take on other employment including voluntary work.
There is other support available if you are not eligible for the grant.
Who can claim?
- You can claim if you’re a self-employed individual or a member of a partnership
- you traded in the tax year 2018 to 2019 and submitted your Self-Assessment tax return on or before 23 April 2020 for that year
- you traded in the tax year 2019 to 2020
- you intend to continue to trade in the tax year 2020 to 2021
- you carry on a trade which has been adversely affected by Coronavirus
HMRC work out your eligibility by looking at your 2019 Self-Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
If you’re not eligible based on the 2018 to 2019 Self-Assessment tax return, they will then look at the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019.
Unfortunately, we cannot make the claim for you, you must do this yourself, but we can guide you through the process offering help or support.
Check if your eligible for the claim
HMRC have released an online tool to find out if you’re eligible to make a claim. We can use this tool to check your eligibility on our behalf.
You need your:
- Self-Assessment Unique Taxpayer Reference (UTR) number
- National Insurance number
What happens if I’m eligible?
HMRC will tell you the date you will be able to make a claim from and ask you to add your contact details. They will then use your details to contact you when the online service will be available.
What happens if I’m not eligible?
If HMRC inform you that you are not eligible to make a claim, please contact us so we can help you find other help or support available.
How much will I get?
HRMC will give you a taxable grant based on your average trading profits over the 3 tax years:
- 2016 to 2017
- 2017 to 2018
- 2018 to 2019
How do I claim?
HMRC’s online service will be available from May 13th, 2020. If you have used the online tool and you have provided your contact details, HMRC will send you a reminder once the service opens. If you are eligible, HMRC will tell you the date you can make your claim from. If your claim is then approved, you will receive the payment within 6 working days.
If you cannot make the claim online HMRC are currently looking at alternative ways to make your claim now, we will update you on this once we receive more information.
To make your claim you will need:
- Self-Assessment UTR
- National Insurance number
- Government Gateway user ID and password
- Bank account number and sort code you want HMRC to pay the grant into
AS YOUR AGENTS WE CANNOT MAKE THIS CLAIM FOR YOU – HMRC WILL NOT ALLOW US
Although, we will be here to help you through the process.
You will be informed by HMRC straight away if your grant has been approved. They will then pay the grant into your bank account after 6 working days.
You must keep a record of:
- The amount claimed
- The claim reference number for your records
- Evidence that your business has been affected by COVID-19
The grant will need to be reported on your:
- Self-Assessment tax return
- As self-employed income for any Universal Credit claims
- As self-employed income and that you’re working 16 hours a week for any tax credit claims
What other support can I get?
- Universal credit
- Deferral of Self-Assessment Income Tax and VAT payments
- Grants for businesses that pay little or no business rates
- Business Interruption Loan Scheme
- Bounce Back Loan
- Coronavirus Job Retention Scheme
If you need any help or support on anything we have mentioned in above, please click here to contact us now or call 0191 586 1615.