The UK chancellor has just released the details on a new financial aid package designed to support self-employed professionals who have been effected by the Coronavirus.
Here’s everything you need to know about who is eligible to apply, how to access this support, and what the Self Employment Income Support Scheme grant could mean for you.
If you are considering applying for the Self Employment Income Support Scheme the deadline for the second grant is October 19th.
What is The Self Employment Income Support Scheme?
The Self Employment Income Support Scheme is a grant designed to support self employed professionals who have lost income due to the Coronavirus.
How Much Will The Grant Provide?
With the first Self Employment Income Support Scheme grant you could claim 80% of your self-employed profits up to £2,500 per month. This 80% is automatically calculated by HMRC based on the past three tax years from 2016 – 2019. The deadline to apply for this grant was July 13th.
For the second Self Employment Income Support Scheme grant you can claim 70% of your monthly income. The grant is processed in a single payment which will cover 3 months of profits up to £6,570. The deadline for the second grant is October 19th.
To learn more about how the grant is determined visit this page.
How Long Will The Support Scheme Provide Coverage?
The support scheme will currently provide support for the next 3 months. Though they have noted that this will be extended if needed.
Are You Eligible?
If you are eligible, HMRC will contact you directly if you match the following criteria:
Eligibility for first grant was determined based on the following criteria:
- You are self-employed or a member of a partnership
- You’ve filed your Income Tax Self Assessment for 2018-2019
- Your self-employed profits make up the majority of your income (more than half) and are also less than £50,000
For the second grant these additional points of criteria are noted:
- You traded in the tax year 2019 to 2020
- You plan to continue to trade in the tax year 2020 to 2021
If you are eligible they will then invite you to apply to the scheme online by a specific date. If you have not received a date from HMRC and think that you may eligible for the grant, you can check eligibility using their online service.
Haven’t submitted your Income Tax Self-Assessment tax return for 2018-2019 yet? To receive the grant you must complete and file this by April 23, 2020.
Started working as a self-employed professional after 2016? HMRC will only use the returns for the years in which you submitted a Self-Assessment tax return.
How Will I Receive My Funding?
The Self Employed Income Support will be paid in one instalment directly to your bank account.
How to Identify Real Funding
The government also notes that it is important not to give out any name, credit card, or bank details to calls, texts, or emails claiming to offer a tax refund.
They’ve posted this warning:
“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.”Source: Gov.uk
Additional Aid Resources
If you are in need of support before the Self Employment Support Scheme is released here are some additional resources the government is offering:
- Universal Credit
- Coronavirus Business Interruption Loan Scheme
- Small Business Loans & Grants
- Support For Businesses Which Pay Little or No Business Rates
- Coronavirus Job Retention Scheme
- Tips For Managing Your Business During These Uncertain Times
- Tips For Offering Your Services Remotely