Last week, the UK Government provided significant support for those self-employed in the form of a grant under the COVID-19 Self-employment Income Support Scheme.
Using the guidance published by HMRC so far, an individual is eligible for the Scheme where they satisfy all of the following conditions:
- Are self-employed or a member of a partnership and have lost income due to coronavirus;
- Have submitted a tax return for 2018–19. If the return has not yet been filed, HMRC have extended the submission deadline to 23 April 2020;
- Carried on a trade in 2019–20 and intend to continue to trade in 2020–21;
- Are trading when applying for the Scheme, or would be except for COVID-19;
- Trading profits (in 2018–19 or on average over the three years ended 2018–19) do not exceed £50,000;
- Profits constitute more than half of their total taxable income in the period
This scheme will allow individuals to claim a taxable grant worth 80% of their average monthly profits from over the last three years (2016/17, 2017/18 and 2018/19) capped at £2,500 per month.
Once the scheme is fully operational, HMRC will contact eligible individuals and invite them to apply online.
Access to this scheme is only through GOV.UK. to avoid fraud and data theft.
The grant will be paid in one instalment in June, directly into your bank account. The grant will be taxable income for the individual.