Claim a grant through the Self-Employment Income Support Scheme

May 9, 2020 - 8 minutes read

If you’re self-employed or a member of a partnership and have been adversely affected by coronavirus (COVID-19) find out if you can use the Self-Employment Income Support Scheme to claim a grant.

The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. This is a temporary scheme, but it may be extended.

If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist.

The grant will be subject to Income Tax and self-employed National Insurance.

There is other support available if you’re not eligible for the grant.

HMRC will work out if you’re eligible and how much grant you may get. But you can follow these steps to help you understand how we will do this and what you can do now.

Who can claim

You can claim if you’re a self-employed individual or a member of a partnership and:

  • 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

Your business could be adversely affected by coronavirus if, for example:

  • you’re unable to work because you:
    • are shielding
    • are self-isolating
    • are on sick leave because of coronavirus
    • have caring responsibilities because of coronavirus
  • you’ve had to scale down or temporarily stop trading because:
    • your supply chain has been interrupted
    • you have fewer or no customers or clients
    • your staff are unable to come in to work

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, we will then look at the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019.

Find out how we will work out your eligibility including if we have to use other years.

Grants under the Self-Employment Income Support Scheme are not counted as ‘access to public funds’, and you can claim the grant on all categories of work visa.

How different circumstances affect the scheme

Check if your circumstances affect your eligibility, for the following:

  • if your return is late, amended or under enquiry
  • if you’re a member of a partnership
  • if you’re on or took parental leave
  • if you have loans covered by the loan charge
  • if you claim averaging relief
  • if you’re non-resident or chose the remittance basis
  • if you’re above the state aid limits

Check if you’re eligible to claim

You can use the online tool to find out if you’re eligible to make a claim. Your tax agent or adviser can also use the online tool to check your eligibility on your behalf.

You’ll need your:

Online services may be slow during busy times. Find out if there are any problems with this service.

Check now

If you’re eligible

Hmrc will tell you the date you’ll be able to make a claim from and ask you to add your contact details. We will use these to remind you when the online service will be available.

If you’re not eligible

Hmrc have used the information you or your tax agent or adviser sent them on your Self Assessment tax returns to work out your eligibility.

If you think you are eligible, you should first check who can claim or contact your tax agent or adviser for help.

If you still think you should be able to claim use the online tool to ask HMRC to review your eligibility.

Find other help and support you can get.

When you make your claim

You’ll only need your:

  • Self Assessment UTR – if you do not have this find out how to get your lost UTR
  • National Insurance number – if you do not have this find out how to get your lost National Insurance number
  • Government Gateway user ID and password – if you do not have a user ID, you can create one when you check your eligibility online
  • bank account number and sort code you want us to pay the grant into (only provide bank account details where a Bacs payment can be accepted)

You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.

If you claim the grant HMRC will treat this as confirmation you’re below the state aid limits.

HMRC will check claims and take appropriate action to withhold or recover payments found to be dishonest or inaccurate.

After you’ve claimed

Once you’ve submitted your claim, you will be told straight away if your grant is approved. We will pay the grant into your bank account within 6 working days.

You must keep a copy of all records in line with normal self-employment record keeping requirements, including:

  • the amount claimed
  • the claim reference number for your records
  • evidence that your business has been adversely affected by coronavirus

You will need to report the grant:

  • 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 credits claims

Contact MCL Chartered Accountants today on 01702 593 029 to optimise your tax position or if you need any assistance with the Self-Employment Income Support Scheme.