Pixel

The Self-Employment Income Support Scheme

Gary Green
Gary Green
March 30, 2020

The government has announced an income support scheme for self-employed UK workers. In today's article, we'll go into some more details about the scheme and who can benefit from it.

After coming under pressure for only helping salaried workers, the chancellor announced the launch of the Self-Employment Income Support Scheme.
In yesterday's article we explained the basics of the scheme and how it works. In this article, we'll give you more detail about exactly who can apply and how you can claim.

If you’d like more information about the changes so far, check out our Coronavirus Tips. And be sure to visit our Coronavirus Update page.

Who Can Apply

If you are self-employed, you can claim a taxable grant from the government of 80% of your trading profits up to £2,500 a month. You'll need to meet the following conditions:

  • Self-employed or member of a partnership
  • Have trading profits of less than £50,000 per year
  • Trading profits represent less than half of your total taxable income
  • Have submitted your Self Assessment for 2018-2019
  • Intend to continue to trade in 2020-2021
  • Have lost trading profits due to the coronavirus

Please note - if you haven't submitted your Self Assessment for 2018-2019, you must do so by 23rd April. If you need help with your tax return, please get in touch and one of our tax experts will be able to start working on this straight away.

The HMRC page on the scheme has more details which we encourage you to read before making any declarations.

How Much Can You Get?

You will receive 80% of the average monthly profits from the tax years:

  • 2016-2017
  • 2017-2018
  • 2018-2019

If you haven't been trading for this long, HMRC will just use a shorter time period to work out your average profits. The maximum payments will be:

  • £2,500 a month
  • For a maximum of 3 months

HMRC will pay the money directly into your bank account in a lump sum. At the moment, early June seems to be the most likely time you'll receive the grant. However, this could change at any time. Remember that the grant is taxable.

You can't apply for the scheme at the moment, and HMRC is asking self-employed workers not to contact them for more information. They will contact you if and when you're eligible. They are also warning of possible scams:

You will access this scheme only through GOV.UK. If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam.

Final Thoughts

Although this is a very generous giveaway from the government, some people will inevitably fall through the cracks. There are some extra measures in recent announcements that you might be able to claim:

  • Income tax payment holiday
  • VAT payment holiday
  • Increased Universal Credit
  • Business Loan Interruption Scheme (talk to your bank)
  • Grants for small businesses (the government will write to you if you are eligible)

You may also be able to furlough yourself if you work via your own company. At the moment the rules around this are unclear. We'll have more information as soon as it becomes available. Be sure to check our blog for updates.

If you are unsure about applying for self-employment support, please feel free to get in touch. We are staying on top of all the announcements from the government and can help you navigate this challenging time.

Interested in our services?
Fill in your details and a member of our experienced team will be in touch shortly to discuss your needs.
Contact Form Demo (#1)
We adhere to strict GDPR rules and do not reveal or sell your data to any third-parties. For more, please read our Privacy Policy.
Latest Insights
October 23, 2023
PAYE Investigations

Dive into the world of PAYE investigations. Uncover the facts, implications, and insights in this informative blog

September 29, 2023
London-based accountancy business acquired by Key Business Consultants

Exciting Merger Alert: London's Reed Taylor Benedict & Benedict Leff Accountants Acquired by Key Business Consultants.

September 18, 2023
Tax Tribunals – An Overview

Dive into the realm of Tax Tribunals: A comprehensive overview shedding light on this crucial aspect of taxation.

September 2, 2023
What Is A COP8?

Learn about COP8, a tax-related Code of Practice issued by HMRC for suspected tax avoidance cases. Discover when COP8s are used and the penalties associated with them.

August 20, 2023
HMRC Compliance Checks

Navigate the complexities of HMRC compliance checks confidently. Our comprehensive guide covers everything you need to know about handling tax inspections and more.

August 6, 2023
Tax Evasion and Tax Fraud

Untangling the complexities of tax evasion and fraud. Delve into our comprehensive guide to understand the differences, consequences, and preventive measures.

June 18, 2023
Which Jobs In The UK Have The Best Salary Growth Potential?

Explore the top UK jobs with the highest salary growth potential. Uncover promising career paths and industries that offer substantial earning potential.

May 23, 2023
How To File Dormant Accounts Through Companies House

Learn the step-by-step process of filing dormant accounts through Companies House with our comprehensive guide.

May 19, 2023
Customs Declaration Service (CDS) and VAT

Discover how the Customs Declaration Service (CDS) and VAT intertwine in this insightful blog article.

View Our latest insights »
Get the latest UK tax & business news and guidance delivered straight to your inbox
Newsletter Form (#2)
We care about the protection of your data. No spam. Unsubscribe anytime.
Copyright © 2022 Key Business Consultants LLP. Reg: E&W OC389322
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram