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.
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
March 4, 2022
An Overview of EIS (Enterprise Investment Scheme) - All You Need to Know

There are several benefits for the EIS, or Enterprise Investment Scheme, to make this an interesting...

March 3, 2022
Tax Relief for Angel Investors: Gary Green's Webinar for Stakeholderz

Key Business Consultants' principal Gary Green spoke with Stakeholderz discussing the SEIS & EIS scheme and...

February 23, 2022
What Are EMI Share Schemes? All You Need to Know

If you are considering awarding shares to your employees, an Enterprise Management Incentive is often the...

January 31, 2022
Payments on Leaving Employment: How to Reduce Your Tax Liability

Normally the process for leaving employment is quick and straightforward but this is not always the...

January 17, 2022
HMRC Investigations: What You Need to Know

Discovering that you are being investigated by HMRC can be very stressful, even if you are...

January 14, 2022
Business Transactions - Guide to Planning and Executing Efficiently

There are some transactions in business that are significant and require substantial forward-planning to be a...

January 12, 2022
Why Employee Equity is an Important Issue For Every Business

Being a business leader is about being willing to embrace innovation and be flexible about how...

January 10, 2022
An Employer’s Guide to Settlement Agreements

If you need to terminate the contract of an employee, a properly drafted settlement agreement can...

January 7, 2022
Taxation of Private Company Shares - What Should You Know?

Many companies opt to reward their employees with shares or options because of the manifold benefits...

View Our latest insights »
Get the latest UK tax & business news and guidance delivered straight to your inbox
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