The application process for the Self Employment Income Support Scheme is now open. This allows the self-employed to claim a second grant if their business has suffered due to Covid-19.
If you were eligible for the first grant you will be eligible for the second grant so make sure you claim as this is a non-repayable grant! The application process closes on 19th October 2020.
To make your claim, go to https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme.
You will need your Unique Taxpayer Reference and your National Insurance number. If we prepare your tax return for you, we will have both. If you need assistance in making the claim, please get in touch and we will be happy to help.
Further Details
The second and final taxable grant is worth 70% of your average monthly trading profits, paid out in a single installment covering 3 months’ worth of profits, and capped at £6,570 in total.
You can receive the grant even if you have continued to work during the pandemic, or if you started a new trade or employment. The grant is not repayable but it will be subject to Income Tax and National Insurance when included on your personal tax return for the year ended 5 April 2021.
You can claim a grant if you’re a self-employed individual or a member of a partnership and your business has been adversely affected due to coronavirus. All of the following must also apply:
- 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 cannot claim the grant if you trade through a limited company or a trust.
To work out your eligibility, HMRC will first look at your 2018 to 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, HMRC will then look at the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019.
You’ll get a taxable grant based on your average trading profit over the 3 tax years.
As always, please feel free to get in touch if you need any assistance on this.