Updated 28th April 2020, 12:03. For the latest medical advice, visit NHS.uk/Coronavirus.
Chancellor Rishi Sunak has set out a comprehensive package of support to help the self-employed. The Coronavirus Self-Employed Income Support Scheme allows you to claim a taxable grant worth 80% of your trading profits, up to a maximum of £2,500 per month. The scheme will be available for at least three months but may be extended.
If you are eligible, HMRC will contact you by mid-May 2020 and will make payments by early June 2020.
You can continue to claim these grants and continue to do business. The scheme is open to those with trading profits of up to £50,000 a year, who make a majority of their income from self-employment. To minimise fraud, only those in self-employment, who have a tax return for 2019 can apply.
HMRC is working urgently to get the scheme up and running, and the government expects people will be able to access it no later than the beginning of June. You don't need to do anything if you are eligible, HMRC will contact you with an online form, and pay the grant straight into your bank account.
Anybody who missed the filing deadline in January will have four weeks from today to submit their tax return.
The self-employed can also access the Coronavirus Business Interruption Loans, and Income tax payments that are due in July can be deferred until the end of January 2021.
Are you eligible?
To be eligible for the scheme you must meet all the criteria below:
- Be self-employed or a member of a partnership;
- Have lost trading/partnership trading profits due to COVID-19;
- File a tax return for 2018-19 as self-employed or a member of a trading partnership. Those who have not yet filed for 2018-19 will have an additional 4 weeks from this announcement to do so;
- Have traded in 2019-20; be currently trading at the point of application (or would be except for COVID 19) and intend to continue to trade in the tax year 2020 to 2021
- Have trading profits of less than £50,000 and more than half of your total income come from self-employment. This can be with reference to at least one of the following conditions:
- Your trading profits and total income in 2018/19
- Your average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19.
How do I access it?
Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational. HMRC will then pay the grant directly to eligible claimants’ bank account. HMRC is urgently working to deliver the scheme; grants are expected to start to be paid out by the beginning of June 2020.
HMRC are publishing guidance on the scheme, available here. This guidance will continue to be updated.
When can I access it?
HMRC is urgently working to deliver the scheme; grants are expected to start to be paid by the beginning of June 2020. This time is necessary to ensure that the scheme is both deliverable and fair. In the interim the self-employed will still able eligible for other government support including more generous universal credit and business continuity loans.
North Devon financial hardship
If your income has been affected by the outbreak, please visit North Devon Council’s financial support page. Even if you've never claimed benefits before, don't let your pride or stigma stop you claiming what you're entitled to.
Changes to the system mean it's much easier for self-employed people to claim help too.