The Self-Employed Income Support 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.
You will get a taxable grant based on your average trading profit over the 3 tax years:
- 2016 to 2017
- 2017 to 2018
- 2018 to 2019
HMRC will work out your average trading profit by adding together your total trading profits or losses for the 3 tax years, then they will divide by 3.
The grant will be 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether.
The online service will tell you how HMRC have worked the grant out.
The grant amount HMRC work out for you will be paid directly into your bank account, in one instalment.
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.
HMRC will work out if you are eligible and how much grant you may get.
Unfortunately the government isn’t allowing us to do this claim on your behalf.
You can check if you are eligible to claim here
If you are eligible for the Grant, HMRC will ask for your contact details and they will email you between the 13 and 18 May.
The HMRC portal opens on different days for different taxpayers.
When you make your claim you will need you:
- Self-Assessment UTR
- 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 (see above)
- Bank account number and sort code you want the grant to be paid into (only provide bank account details where a Bacs payment can be accepted)
You will 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 are below the state aid limits.
After you have claimed
Once you have submitted your claim, you will be told straight away if your grant is approved.
HMRC 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 for the 2020/21 tax year
- as self-employed income for any Universal Credit claims
- as self-employed income and that you are working 16 hours a week for any tax credits claims
Find out how HMRC will work out your average trading profits including if you have not traded for all 3 years here.
If the online checker tells you are not eligible, despite you fitting the criteria, please let us know and we can appeal on your behalf.
Contact our tax manager Nick Charnley, your account manager or call 01244 343504.